{"id":650,"date":"2020-11-17T06:08:49","date_gmt":"2020-11-17T06:08:49","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=650"},"modified":"2022-01-31T13:36:51","modified_gmt":"2022-01-31T13:36:51","slug":"indigo-paints-received-green-signal-from-sebi-to-raise-rs-1000-crores","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/indigo-paints-received-green-signal-from-sebi-to-raise-rs-1000-crores\/","title":{"rendered":"Indigo Paints received green signal from SEBI to raise Rs. 1,000 crores"},"content":{"rendered":"
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As quick as fads and fashion get orthodox in the\nfast-changing environment it would be \u2018fit and proper\u2019 to say that home d\u00e9cor\nitems get faded quickly but painting on walls can never go out of fashion. The\npaint industry is a growth-oriented industry in Indian economy keeping in mind\nthat people are much serious about their status symbol, growth of real estate\nsector due to falling interest rates and reduction in stamp duty. After the success\nstories of Asian Paints, Berger Paints, Akzo Nobel and Kansai Nerolac in the\nIndian secondary market, Indigo Paints is standing on the doors of primary\nmarket with fresh issue and Offer for Sale. \nThe issue size of Rs. 300 crores and 5.84 million equity shares by\nSequoia Capital is a mix of fresh issue and offer for sale respectively.\nAccording to Draft Red Herring Prospectus, the issue comprises of Rs. 300\ncrores to be raised from issuance of fresh equity which will be utilized for\nexpansion plans at manufacturing facility in Tamil Nadu. Funds from new issue\nwill also be utilized for purchase of tinting machines and gyro shakers and\npayout of borrowings while rest will be utilized for other general corporate\npurpose.<\/p>\n\n\n\n

About the Company<\/strong><\/p>\n\n\n\n

Founded in 2000, Indigo Paints is one of the largest paint manufacturing company in India. Backed by Sequoia Capital, Indigo started its business with lower end cement paints but extend its portfolio later by inculcating water-based paints like Exterior Emulsions, Interior Emulsions, Distempers, Primers, etc. The company claims a vision of continuous innovation by churning out bright new ideas for painting solutions. Indigo is among five largest paint companies in India after creating an extensive distribution network across 27 states and seven union territories as of September 30, 2020, and installing tinting machines across our network of dealers. The company has engaged Mr. Mahendra Singh Dhoni to enhance brand image pan-India. The company has its own manufacturing capacities which have helped them in achieving higher productivity and efficiency in length of production cycle.<\/p>\n\n\n\n

Must Read: Burger King India received green signal from SEBI to raise Rs. 542 crores<\/a><\/p>\n\n\n\n

Industry Overview<\/strong><\/p>\n\n\n\n

The water-based paint market has gained traction in last\ndecade as a shift in traditional pattern of Indian families spending pattern\nwhich is more towards maintaining their status symbol. The decorative industry\nhas a three-stage setup comprising raw material suppliers, manufacturers and\nsellers in which most of the raw materials in \nthe  paint  industry \nare  petroleum  based, \nsupplied  by  petrochemical \ncompanies. Their input cost is highly affected by crude oil prices and\npricing of other companies due to their oligopolistic industry. There are\nstrong barriers for other players to enter in the market in terms of replacement\ncost and science behind the paint manufacturing. The  consumption \nof  water-based  paints \nis  rising  globally, \nand  the  demand \nis  expected  to \nremain  high  as \nIndian  paint manufactures are shifting\nfrom solvent-based to water-based paint.<\/p>\n\n\n\n

Financials<\/strong><\/p>\n\n\n\n

On the financial front, the company had reported 478.15\ncrores net profit for the year ending FY20. The company do not claims the tag\nof debt-free as a whooping amount of Rs. 339 crores in the form of non-current\nliability is occupied in balance sheet. Gross revenue from operations are\nincreasing at a CAGR of 24.74%.  In the\nlisted space, the company will face tough competition from Asian Paints, Berger\nPaints, Akzo Nobel and Kansai Nerolac. Paints companies occupy healthy premium\nin the market due to their short cash conversion cycle and FMCG attribute.<\/p>\n\n\n\n

Book Runners<\/strong><\/p>\n\n\n\n

Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities are the book running lead managers to the issue while registrar to the issue is Link Intime India Private Limited.<\/p>\n\n\n\n

Also Read: Kalyan Jewellers received green signal from SEBI to raise Rs. 1,750 crores<\/a><\/p>\n

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As quick as fads and fashion get orthodox in the fast-changing environment it would be \u2018fit and proper\u2019 to say that home d\u00e9cor items get […] Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":651,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180,70],"tags":[],"class_list":["post-650","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-ipo"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=650"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/650\/revisions"}],"predecessor-version":[{"id":652,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/650\/revisions\/652"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/651"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}