The IPO comprised new fairness shares aggregating to ₹300 crore by the corporate and a proposal on the market of as much as 5.84 million shares, or 12.81%, by Sequoia Capital India (SCI) Investments IV, SCI Investments V, and promoter Hemant Jalan.

Indigo Paints proposed to make the most of the online proceeds of the share sale by allocating ₹150 crore in direction of funding capital expenditure for growth of its current manufacturing facility at Pudukkottai, Tamil Nadu, by organising a further unit adjoining to the prevailing facility. One other ₹50 crore can be utilized for buy of tinting machines and gyroshakers, ₹25 crore in direction of reimbursement/prepayment of all or sure firm’s borrowings, and the remaining in direction of basic company functions.

Over FY18-20, Indigo’s income/EBITDA/ web revenue grew at a CAGR of 25%/88%/84% respectively whereas EBIITDA margins expanded 814 foundation factors (bps) to 14.6%. “It enjoys lean working capital cycle of 25 days and wholesome return on fairness (RoE) / return on capital employed (RoCE) of 28% and 23% respectively. The web debt/fairness as of September stood at 0.1 occasions which publish IPO will cut back to zero. The problem is valued at 11.3 occasions FY20 market cap/gross sales,” mentioned Motilal Oswal Monetary Providers.

Indigo Paints is the fifth-largest firm within the ornamental paint trade in India by way of its income from operations for FY20. As on 30 September, the agency owned, operated three manufacturing amenities in Jodhpur (Rajasthan), Kochi (Kerala), and Pudukkottai (Tamil Nadu). These amenities had a complete put in manufacturing capability of 101,903 kilolitres each year for liquid paints and 93,118 tonnes each year for putties and powder paints. The corporate has an in depth distribution community throughout 27 states and 7 Union territories as of September.