Indigo Paints Ltd

About the Company:

Indigo Paints Ltd is the fifth largest company in the Indian decorative paint industry in terms of revenue from operations for Fiscal 2020 and also the fastest growing amongst the top five paint companies in India.

Company has achieved this position in a highly competitive Indian decorative paint industry on the back of our multi-pronged approach.

This includes introducing differentiated products to create a distinct market in the paint industry, building brand equity for our primary consumer brand of “Indigo”, creating an extensive distribution network across 27 states and seven union territories.

Company manufactures a complete range of decorative paints including emulsions, enamels, wood coatings, distempers, primers, putties and cement paints.

To create demand for Company’s differentiated products, Indigo paints initially tapped into Tier 3, Tier 4 Cities, and Rural Areas, where brand penetration is easier and dealers have greater ability to influence customer purchase decisions.

Company subsequently leveraged this network to engage with dealers in Tier 1 and Tier 2 Cities and Metros.


Indigo & Other Paint Companies operating in India.

Indigo Paints started its operations in 2000 and has been present across segments such as interior and exterior emulsions, enamels, wood coatings, putty, primers and ceiling and floor coats.

Being the fifth largest player in the decorative segment, it has recently entered bigger markets such as Mumbai and Delhi.

Other small paint companies with sizeable presence include Shalimar Paints, Nippon Paint India, Kamdhenu Paints and JSW Paints. Paint companies with lesser presence include Jenson & Nicholson Paints Private Limited (JNPL), Snowcem Paints, and Jotun Paints.


Marketshare in Indian Decorative Paint Industry: 



Indigo paints Introduced certain differentiated products in the decorative paint market in India, which includes:

  • Metallic Emulsions.
  • Tile Coat Emulsions.
  • Bright Ceiling Coat Emulsions.
  • Floor Coat Emulsions.
  • Dirtproof & Waterproof Exterior Laminate.
  • Exterior and Interior Acrylic Laminate and
  • PU Super Gloss Enamel.



Company’s Manufacturing Facilities:

Company owns and operates three manufacturing facilities located in Jodhpur (Rajasthan), Kochi (Kerala) and Pudukkottai (Tamil Nadu) with an aggregate estimated installed production capacity of 101,903 kilo litres per annum (“KLPA”) for liquid paints and 93,118 metric tonnes per annum (“MTPA”) for putties and powder paints.

We also intend to expand our manufacturing capacities at our facility at Pudukkottai in Tamil Nadu, by adding capacities to manufacture water-based paints to cater to the growing demand for these paints.

The proposed installed production capacity of the expansion unit is 50,000 KLPA and it is expected to be operational during Fiscal 2023.


Company’s Distribution Network:

As of March 31,2020, company’s distribution network comprised 36 depots, and 11,230 Active Dealers in India, respectively. As of March 31,2020, the total number of tinting machines that we placed across our network of dealers was 4,296.


Comparison between Asian Paints (Industry Leader) and Indigo Paints:

The industry leader had the largest dealer network as of March 31, 2020, with over 70,000 dealers compared to Indigo paints network of 11,230 Active Dealers in India as of March 31, 2020.



Management Team:

  1. Mr. Hemant Jalan (Designation: Managing Director)
  2. Mr. Anita Jalan (Designation: Executive Director)




Objectives of the Issue:

Offer for Sale: (Rs.870 cr)

  • Company will not receive any proceeds from the Offer for Sale and the proceeds received from the Offer for Sale will not form part of the Net Proceeds.


Fresh Issue: (Rs. 300 cr)

  • Funding capital expenditure for expansion of the existing manufacturing facility at Pudukkottai, Tamil Nadu (the “Proposed Expansion”) by setting-up an additional unit adjacent to the existing facility.
  • Purchase of tinting machines and gyroshakers.
  • Repayment/prepayment of all or certain of our borrowings.
  • General corporate purposes.



Proposed schedule of implementation: 


Financials of the Company:

(in Crores) FY 18 FY 19 FY 20 30th Sept 20
Revenue 403.1 537.2 626.4 260.2
Net Profit 12.8 26.8 47.8 27.2



Valuation of Peer Group Companies: (Will be Updated)

Company Name Face Value EPS PE Ratio RoNW NAV
Indigo Paints Limited 10 10.49 142 24.27% 43.23
Asian Paints Ltd 1 28.25 78.77 27.39% 105.61
Berger Paints India Ltd 1 6.76 96.81 24.66% 27.39
Kansai Nerolac Paints Ltd 1 9.67 54.48 13.72% 69.77
Akzo Nobel India Ltd 10 52.13 38.34 19.18% 271.85

Also Read about a Small Listed Paints Company:  Sirca Paints Ltd


Fund Utilisation:

Particulars Amount (Rs. in Crores)
Funding capital expenditure for the Proposed Expansion 150.00
Purchase of tinting machines and gyroshakers 50.00
Repayment/prepayment of all or certain of our borrowings 25.00
General corporate purposes 75.00
Net Proceeds 300 cr


IPO Details:

Details Info
Issue Opens on 20th January 2021
Issue Closes on:. 22nd January 2021
Issue Price Rs. 1488 – 1490
Face Value Rs.10
Retail Category Allocation 35%
Minimum Lot 10 shares
Minimum Investment Rs. 14,900
Issue Constitutes 16.50%
Issue Size Rs. 1170 cr ($158 million)
Market Cap Rs. 7087 cr ($957 million)
Listing at NSE & BSE
Equity Shares Offered (Fresh) 20,13,422 (Rs.300 cr)
Equity Shares Offered (OFS) 58,40,000 (Rs. 870 cr)
Total Equity Shares Offered (Fresh + OFS) 78,53,422 ( Rs.1170 cr)
Equity Shares Prior 4,55,55,575
Equity Shares after the issue 4,75,68,997


Important Dates:

Finalization of Basis of Allotment On or Before 28th January 2021
Initiation of Refunds On or Before 29th January 2021
Credit of Equity Shares: On or Before 1st February 2021
Listing Date:  On or Before 2nd February 2021


Subscription Details: (Will be Updated)

(Subscription-Category-Wise (no. of times) Till time : 05:00 PM) Shares Offered 20/01 21/01 21/01
QIB 15,56,690 0.11 3.86 189.58
NII 11,67,514 1.10 5.38 263.05
Retail 27,24,198 3.29 9.56  15.93
Employee    70,000 0.73 1.81   2.50
TOTAL 55,18,402 1.90 6.97 117.02


IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
10.49 142 24.27% 43.23



Check IPO Allotment Status:

Link InTime Website:

BSE IPO Website:



Company Contact Info:
Indigo Paints Ltd
Indigo Tower
Street-5, Pallod Farm-2
Baner Road
Pune 411 045
Maharashtra, India
Tel: +91 20 6681 4300



IPO Registrar Info:
Link Intime India Private Limited
C-101, 247 Park, L B S Marg,
Vikhroli (West), Mumbai
400 083 Maharashtra, India
Tel: +91 22 4918 6200