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Indigo Paints Limited will open its initial public offering of Equity Shares on January 20, 2021 with a price band of ₹1,488–₹1,490 per Equity Share.
The paint company, now the fifth largest in the country in decorative paint industry, may, in consultation with the Book Running Lead Managers, consider participation by Anchor Investors which shall be one Working Day prior to the Bid/Offer Opening Date.
The IPO comprises a fresh issuance of Equity Shares aggregating to ₹3,000 million by the Company and an offer for sale of up to 5,840,000 Equity Shares by Sequoia Capital India Investments IV and SCI Investments V, and the promoter selling shareholder, Hemant Jalan.
The offer includes a reservation of up to 70,000 equity shares for subscription by eligible employees of the company. The company and the selling shareholders in consultation with the managers, are offering a discount of ₹148 per equity share to eligible employees bidding in the Employee Reservation Portion.
Briefing newspersons, the company Managing Director Hemant Jalan said, it is proposed to utilise the IPO proceeds of ₹150 crore towards funding capital expenditure for expansion of its existing manufacturing facility at Pudukkottai, Tamil Nadu by setting-up an additional unit adjacent to the existing facility; ₹50 crore towards purchase of tinting machines and gyroshakers; ₹25 crore towards repayment/prepayment of all or certain of company’s borrowings; and balance towards general corporate purposes.
Kotak Mahindra Capital Company Limited, Edelweiss Financial Services Limited and ICICI Securities Limited are the managers to the offer.
The company owns and operates 3 manufacturing facilities — Jodhpur (Rajasthan), Kochi (Kerala) and Pudukkottai (Tamil Nadu).
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