·
Price Band of Rs.
1,488 – Rs. 1,490 per equity share of face value of Rs. 10 each (“Equity
Share”) A discount of Rs.
148 per Equity Share is being offered to Eligible Employees bidding in the
Employee Reservation Portion
·
Bid/Offer Opening
Date – Wednesday, January 20, 2021 and Bid/Offer Closing Date – Friday, January
22, 2021
·
Minimum Bid Lot
is 10 Equity Shares and in multiples of 10 Equity Shares thereafter
·
The Floor Price
is 148.8 times the Face Value of the Equity Shares and the Cap Price is 149.0
times the Face Value of the Equity Shares.
Mumbai, January
14, 2021: Pune based, Indigo Paints Limited
(the “Company”), one of the fastest growing amongst the top five paint
companies in India and fifth largest company in the Indian decorative paint
industry in India in terms of its revenue from operations for FY20 (Source:
F&S Report), will open the Bid/Offer period in relation to its initial
public offering of Equity Shares (the “Offer”/ “IPO”) on Wednesday,
January 20, 2021. The Bid/Offer period will close on Friday, January 22, 2021. The
price band of the Offer has been fixed at Rs. 1,488 – Rs. 1,490 per Equity
Share. The
Company may, in consultation with the Book Running Lead Managers (the “BRLMs”),
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 Rs. 3,000 million by
the Company (“Fresh Issue”) and an offer for sale of up to 5,840,000
Equity Shares by Sequoia Capital India Investments IV and SCI Investments V
(the “Investor Selling Shareholders”), and the promoter selling
shareholder, Hemant Jalan (the “Promoter Selling Shareholder” and
together with the Investor Selling Shareholders, the “Selling Shareholders”
and such offering of Equity Shares by the Selling Shareholders, the “Offer
for Sale”). The Offer includes a reservation of up to 70,000 Equity Shares
for subscription by Eligible Employees of the Company (the “Employee
Reservation Portion”). The Company
and the Selling Shareholders in consultation with the BRLMs, are offering a
discount of Rs. 148 per Equity Shareto the Offer Price to Eligible Employees
bidding in the Employee Reservation Portion.
The Offer less the Employee Reservation Portion is referred to as the “Net
Offer”. The Offer is
being made through book building process in accordance with Rule 19(2)(b) of
the Securities Contracts (Regulation) Rules, 1957 and Regulation 31 of the Securities
and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2018, as amended (the “SEBI ICDR Regulations”) and in compliance with Regulation 6(1) of the
SEBI ICDR Regulations, wherein not more than 50% of the Net Offer shall be
allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”,
the “QIB Portion”), provided that the Company may, in consultation with
the BRLMs, allocate up to 60% of the QIB Portion to Anchor Investors on a
discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor
Investor Portion”), of which one-third shall be reserved for domestic
Mutual Funds, subject to valid Bids being received from domestic Mutual Funds
at or above the Anchor Investor Allocation Price. In the event of
under-subscription, or non-allocation in the Anchor Investor Portion, the
balance Equity Shares shall be added to the Net QIB Portion. Further, 5% of the
Net QIB Portion shall be available for allocation on a proportionate basis only
to Mutual Funds, and the remainder of the Net QIB Portion shall be available
for allocation on a proportionate basis to all QIBs, including Mutual Funds,
subject to valid Bids being received at or above the Offer Price. However, if
the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion,
the balance Equity Shares available for allocation in the Mutual Fund Portion
will be added to the remaining Net QIB Portion for proportionate allocation to
QIBs.
Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. Further, Equity Shares will be allocated on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids received from them at or above the Offer Price. All potential Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective ASBA accounts, and UPI ID in case of RIBs using the UPI Mechanism, if applicable, in which the corresponding Bid Amounts will be blocked by the SCSBs or by the Sponsor Bank under the UPI Mechanism, as the case may be, to the extent of respective Bid Amounts. Anchor Investors are not permitted to participate in the Offer through the ASBA process.
The Company proposes to utilise the Net Proceeds as follows (i) INR 1,500 mn 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; (ii) INR 500 mn towards purchase of tinting machines and gyroshakers; (ii) INR 250 mn towards repayment/prepayment of all or certain of Company’s borrowings; and (iv) balance towards general corporate purposes.
The Equity Shares offered in this Offer are
proposed to be listed at both BSE Limited (“BSE”) and National Stock
Exchange of India Limited (“NSE”, together with BSE, the “Stock
Exchanges”) post the listing. For the purpose of the Offer, BSE is the
Designated Stock Exchange.
Kotak Mahindra Capital Company Limited,
Edelweiss Financial Services Limited and ICICI Securities Limited are the BRLMs
to the Offer.
All capitalized terms used herein and not
specifically defined shall have the same meaning as ascribed to them in the Red
Herring Prospectus dated January 11, 2021 (“RHP”).
