Reblog: Indigo Paints Ltd. IPO Review
- IPL is the fastest growing paint company and placed in the top five players in India.
- The company has posted spectacular growth compared to listed peers.
- Aggressive pricing mirrors future growth prospects, opined management.
- IPL is largely banking on differentiated products that are being introduced for the first time.
- Investors may consider investing in this IPO with a long term perspective.
ABOUT COMPANY:
Indigo Paints Ltd. (IPL) is the fastest growing amongst top five paint companies in India. The company initially targeted Tier 3 and Tier 4 cities and rural area for its market penetration and is now entering Tier 1 and Tier 2 cities and Metros.
IPL currently manufactures a complete range of decorative paints including emulsions, enamels, wood coatings, distempers, primers, putties and cement paints. It also identifies potential product needs from customers and introduces differentiated products to meet these requirements, and create a distinct market for products. It is the first company to manufacture and introduce 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 (together, “Indigo Differentiated Products”) (Source: F&S Report). These products are differentiated based on the end-use they cater to, as well as added properties that they possess. The company is currently present in 27 states and 7 Union Territories with extensive penetration in small towns. IPL has installed 4600 tinting machines till September 30, 2020.