Last updated: 18 Jan, 2021 | 01:48 pm
Indigo Paints is set to raise up to ₹1,170 crore via IPO which opens on 20th January, Wednesday. Here are the details:
About Indigo Paints
About the issue
At the higher end of the price band, Indigo Paints IPO is aggressively priced at a PE ratio of 142 times FY20 earnings per share. This is similar to its highly valued listed peers Asian Paints (115) and Berger Paints (126), (on a trailing 12 months basis for peers). However, Indigo Paints has a better growth potential due to its lower base and market share.
The company’s market share would only increase to a low 4.4% from 2% currently, even if it grows at double the rate of the industry (18% for Indigo vs 9% for the industry). Given strong fundamentals, good return ratios, and attractive growth prospects we remain positive on the prospects of the issue.