Indigo Paints launched its first Initial Public Offering (IPO) on January 20, 2021. The price band was set between Rs. 1,488 and Rs. 1,490 per share. The IPO was open for subscription until January 22, 2021. It is worth mentioning that the company received an overwhelming response from various investor categories, such as retail investors, qualified institutional buyers (QIBs), non-institutional investors (NIIs), and even their own employees.

Next, Indigo Paints launched its second IPO from January 20, 2021, to January 22, 2021. Again, the price range for each share was set between Rs. 1,488 and Rs. 1,490. This IPO included both a fresh issue of shares worth Rs. 300 crores and an offer for sale (OFS) of shares totalling Rs. 870 crores.

In this article, we will study several key events to understand how both the Indigo Paints IPOs unfolded. Also, we will check their listing performance and how the company dealt with the COVID-19 pandemic.

• Indigo Paints' IPO was highly successful, with shares listed at a 75% premium.
• The company also launched a second IPO, which included a fresh issue of shares and an offer for sale.
• Indigo Paints managed the COVID-19 pandemic by expanding into smaller towns and rural areas. This strategy helped them stabilise revenues.

Below is a day-by-day breakdown of key events:

Day 1 (January 20, 2021)

• By the end of the first day, the IPO was subscribed 1.9 times.
• Total bids received were 1.04 crore shares against the offer size of 55.18 lakh shares.
• Category-wise subscription:
  • Retail investors: 3.3 times
  • Non-institutional investors (NII): 1.09 times
  • Employees: 72% of the reserved portion
  • Qualified Institutional Buyers (QIB): 10% of the reserved portion

Day 2 (January 21, 2021)

• By the end of the second day, the IPO was subscribed 6.97 times.
• Category-wise subscription:
  • Employees: 1.8 times
  • Retail Investors: 9.6 times
  • QIB: 3.8 times
  • NII: 5.1 times

Day 3 (January 22, 2021 - Final day)

• By the end of the final day, the IPO was heavily oversubscribed.
• The total bids amounted to 64.57 crore shares against the offer size of 55.18 lakh shares.
• Subscriptions as of 12:50 p.m.
  • Employees: 2 times
  • Retail Investors: 13 times
  • QIB: 27 times
  • NII: 84 times

• Final subscriptions as of 5:00 p.m.
  • Employees: 2.49 times
  • Retail Investors: 15.93 times
  • QIB: 189.6 times
  • NII: 263 times

The listing performance

After the conclusion of Indigo Paints IPO, its shares were listed on the BSE on February 2, 2021. The shares opened at Rs. 2,607.5 per share. This marked a 75% premium over the IPO issue price of Rs. 1,490 per share. Such a strong listing performance shows that the Indigo Paints IPO was highly successful.

Also, the company is a strong candidate for future growth as Indigo Paints has made several strategic investments in brand building and even maintains a favourable market position. The listing at a 75% premium represents the market’s confidence in the company.

From January 20 to January 22, 2021, Indigo Paints launched its second IPO. The price for each share was again set between Rs. 1,488 and Rs. 1,490. This IPO had two parts:

• Part I: Fresh issue of shares (Rs. 300 crore)

The company issued new shares to raise money. This money will be used for the company’s growth and to repay debt. Also, the minimum investment required for retail investors was Rs. 14,880 per lot. They could apply for a maximum of 13 lots.

• Part II: Offer for sale (Rs. 869-870 crore)

Existing shareholders (like early investors or promoters) sold some of their shares to the public. This part did not raise new money for the company but allowed these shareholders to cash out some of their investments.

Now, let’s check out the subscription details:

• Retail investors could buy up to 35% of the shares.
• HNIs were allotted 15% of the shares.
• QIBs were allotted 50% of the shares.

Before the IPO, the company’s promoters owned around 60% of the shares. The remaining 40% was held by the public and other non-promoter shareholders. Both the IPOs launched by the company aimed to increase public ownership and raise funds for future growth.

During the initial phase of the pandemic, Indigo Paints tried to expand in small towns and rural areas. That’s because here it was easier to influence buying decisions and establish a market presence. This strategy was successful and helped the company build a solid foundation.

Moreover, the company's revenues were less affected compared to competitors because smaller towns and rural areas experienced fewer COVID-19 infections. Also, this helped the company to stay stable and minimise losses.