Sequoia Capital-backed Indigo Paints on Thursday fixed the price band for its forthcoming Rs 1,000-crore IPO at Rs 1,488-1,490 apiece. According to dealers in the unlisted market, the scrip was commanding a grey market premium of 55-60 percent at the time of writing this report.


Indigo Paints is a decorative paint manufacturer. Its peers are companies such as Asian Paints, Berger, Kansai Nerolac, and Akzo Nobel. The size of the decorative paints industry in 2019 was Rs 40,300 crores and as per research by Frost & Sullivan, Indigo Paints had about 2% market share.

The company manufactures a wide array of decorative paints including emulsions, distempers, enamels, primers, wood coatings, cement paints, and putties. Indigo Paints is the first paint company to offer products differentiated based on the end-use that they cater to.

The company operates three manufacturing facilities in Jodhpur (Rajasthan), Kochi (Kerala), and Pudukkottai (Tamil Nadu). These facilities have been chosen strategically close to the sources of raw materials bringing down the freight costs and allowing the company to offer cost-efficient products. The company plans to expand its manufacturing capabilities by adding capacities to manufacture water-based paints in Pudukkottai (Tamil Nadu) to meet the increasing demand.


The issue will open on January 20 and remain open for subscription until January 22. The price band has been set at ₹1488 – ₹1490 per share.
The bids can be made for a minimum of 10 equity shares and in multiples of 10, thereafter.
The company received capital markets regulator Sebi’s approval for an initial public offering last week. This will make it the second offering to hit the public market in 2021, after IRFC.

Broker’s View on INDIGO PAINTS IPO

Keshav Lahoti, Associate Equity Analyst at Angel Broking in a written statement to Business Insider also said that “If the issue is priced reasonably, we expect a good response for this IPO.”

HDFC Securities in an earlier IPO note said that making inroads into the paints industry with a small number of firms remains a herculean task, given strong distribution moats of the top few. “Against this backdrop, Indigo Paints (founded in 2000) has been consistently chipping away market share within the ecosystem.”

HDFC Securities also noted that the company has ‘smartly executed its revenue ramp-up’ and that reflects in the company’s improving fundamentals.

Abhay Doshi, Founder,, said that there is a frenzy in broader markets. Also, the recently-concluded IPOs were heavily subscribed, which adds to the attractiveness of the company.

“Historically, Paint companies enjoy premium valuations. The company is showing robust growth with a strong product portfolio,” he added. “Thus the price band might be higher than the ideal range.”