Indigo Paints IPO Commands a 55% Premium in Grey Market

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Indigo Paints IPO Commands a 55% Premium in Grey Market
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- According to multiple sites, Indigo Paints’ IPO is seeing a premium of Rs 800-Rs 825 which translates to around 55% on its subscription band of Rs 1,488 – Rs 1,490 per share.

The company will open up its Rs 1,490 crore IPO subscription on January 20 and close it on January 22. Investors have to be bid for 10 shares minimum, and in multiples of 10 shares hereafter.

Indigo Paints is the fifth-largest paint player in the country. It is one of the fastest-growing players in its segments. Indigo has been growing at a rate of 15.8% for the last three years. It recorded sales of Rs 6,264 crores in FY2020 from Rs 4,031 crores in FY2018.

The IPO comprises fresh issuance of equity shares aggregating to ₹300 crores by the company and an offer for sale of up to 5,840,000 shares by Sequoia Capital India Investments IV and SCI Investments V and promoter Hemant Jalan.

“Indigo Paints is well placed to outperform the industry in future, we have a positive outlook for Indigo paints IPO,” Yash Gupta Equity Research Associate, Angel Broking said.

Listed players like Asian Paints (NS: ASPN ) and Berger Paints (NS: BRGR ) have been growing between 5%-12% in the same period.

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  • Chandan Jha @Chandan Jha
    Well that does mean the IPO may not open higher than the bid price! isn't it? If the GMP is so much lower than offered bid price
    Like 3
    • Ashish Kumar @Ashish Kumar
      GMP is the premium on top of the offer price. The shares are trading around 2300 in grey market but IPO is at 1490, so GMP is 800.
      Like 3

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  • Chandan Jha @Chandan Jha
    Well that does mean the IPO may not open higher than the bid price! isn't it? If the GMP is so much lower than offered bid price
    Like 0
  • Mo Lo @Mo Lo
    Whats a Grey market here ?
    Like 0
    • Ashish Kumar @Ashish Kumar
      A market for trading shares of unlisted or pre-IPO shares.
      Like 3
    • Ravish Mahajan @Ravish Mahajan
      before IPO shares can be sold in unregulated market without any intermediary (stock exchange).People who already have shares (promoters, relatives, banks, employees, private equity) can sell shares to others just like any other thing is called grey market.
      Like 1
    • Gaurav Yadav @Gaurav Yadav
      Color of market is grey
      Like 4

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