The second IPO of this year received a massive response from investors on the last day of subscription (stock market futures)  last month as the issue was subscribed 117 times.

Shares of Indigo Paints on Tuesday made an impressive market debut, listing with a premium of 75 per (stock market futures)  cent against its issue price of 1,490.

                                   

At the National Stock Exchange (NSE), it listed at 2,607.50. The company's market valuation stood at 11,684.85 crore on the Bombay Stock Exchange (BSE).

The second initial public offering (IPO) of this year received a massive response from investors on the last day of subscription last month as the issue was subscribed 117 times. This highlighted investor confidence in a recovery in the sector as the economy returns to normalcy from the Covid-19 pandemic.

When the IPO closed for subscription on January 22, it was the most subscribed IPO of the year till now.

Earlier in January, Indigo Paints had mopped up 348 crore from anchor investors.

Among the major anchor investors are Government of Singapore Investment Corporation, Fidelity, Goldman Sachs, Nomura, Government Pension Fund Global, HSBC, SBI Mutual Fund(MF), HDFC MF, ICICI Prudential MF, Axis MF, HDFC Life and ICICI Prudential Life.

The IPO comprised of fresh issuance of stocks aggregating to 300 crore and an offer-for-sale of up to (stock market futures)  58,40,000 equity shares by private equity firm Sequoia Capital, through its two funds SCI Investments IV and SCI Investments V, and promoter Hemant Jalan.

The Pune-based company manufactures a range of decorative paints and has an extensive distribution (stock market futures)  network across the country. It is the fifth-largest company in the paint industry in terms of the revenue.

Proceeds from the fresh issuance of shares would be used for expansion of the existing manufacturing (stock market futures)  facility at Pudukkottai in Tamil Nadu, purchasing of tinting machines and gyro shakers, and repayment/prepayment of borrowings.

Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities are the managers to the offer.