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Indigo Paints IPO Details, Review - All You Need to Know

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In this article, we are gone to review the IPO of Indigo Paints.


Indigo Paints IPO Details, Review - All You Need to Know
Indigo Paints IPO Review

What we have covered:


Let's start with two question

  1. Which brand do you used to paint your home?

  2. Before this IPO of Indigo Paints, do you know the company or not?

(Comment down your answer below)


I think most of you will say NO.

Indigo Paints is unknown to many of us for few years. Today it is one of the top 5 companies in the decorator paint industry.


Let's check out the IPO detail

  • Opening Date : Jan 20, 2021

  • Closing Date : Jan 22, 2021

  • IPO Price : ₹ 1488 to ₹ 1490 per equity share

  • Market Lot : 10 Shares

  • Allotment Date: Jan 28, 2021

  • IPO Listing Date: Feb 2, 2021 (BSE & NSE)

  • Issue Size : [.] Eq Shares of ₹ 10 (aggregating up to ₹ 1,176.00 Cr)

  • Fresh Issue : [.] Eq Shares of ₹ 10 (aggregating up to ₹ 300.00 Cr)

60% Stack of Indigo Paints belong to the Jalan family the remaining 40% belong to Sequoia Capital.


Jalan's family and Sequoia Capital are going to sell some of his stacks in this IPO through an Offer for sale. The fund raises from the fresh issue will use for the expansion of the manufacturing facilities.

Currently, there are three main manufacturing facilities in India.


Revenue Share of Indigo Paints (%):

Indigo Paints IPO Details, Review - All You Need to Know
Revenue Share of Indigo Paints (%):

Mainly there are two segments in Paint Industry.

  • Industrial Paints

  • Decorative Paints

The market share of Industrial Paint is 26%, and the Market Share of Decorative Paint is 74%.

And the good thing is that Indigo Paint operated in Decorative Paint only


Now let's see the market shares of a different company in Decorative Paint.

Indigo Paints IPO Details, Review - All You Need to Know
Market shares of a different company in Decorative Paint.


Decorative Paint Industry Growth:

Indigo Paints IPO Details, Review - All You Need to Know
Decorative Paint Industry Growth

In the Paint business, 78% of Revenue comes from Repainting and 22% from Fresh Painting. From this, we can understand that Repainting plays an important role in Paint Business.


Fun Fact:

In the Paint business, 78% of Revenue comes from Repainting and 22% from Fresh Painting. From this, we can understand that Repainting plays an important role in Paint Business.


Let's see Company Revenue:

The annual Compound Revenue Rate of the company in the last three year is 29.24%



Let's see Company Profit:

Indigo Paints IPO Details, Review - All You Need to Know
Indigo Paint Company Profit

The Annual Compound Profit of the company in the last two years is 54.91%.


The good thing about the company is that indigo paints always focus on innovation. The company also faces strong competition in the market.


Company Valuation:

Market capitalization of the company is 7,100 crores.

Price to Earnings Ratio (P/E) is 140


Price to Earnings Ratio (P/E) of other companies:

  • Asian Paints : 107

  • Berger Paints : 145

  • Nerolac Paints : 90

  • Akzo Nobel : 58

The P/E Ratio of Indigo Paints is more compare to other companies.

P/E ratio will justify if the company keeps growing at the same or more rate. If the company fails to grow at the same rate, then the P/E Ratio will look overvalue.


Comment down below whether you are applying for this IPO or not.

Share this article with your loved ones to spread knowledge


Thanks for Reading.

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