Indigo Paints' shares closed with a massive 109 percent rally on the listing day, February 2, thanks to favourable market conditions led by the Union Budget 2021-22, and the company's strong fundamentals.
The stock settled at Rs 3,118.65 on BSE, rising 109.31 percent over the issue price and gaining 19.60 percent over the opening price of Rs 2,607.50. It touched an intra-day high of Rs 3,129 (which was the 20 percent upper circuit) and low of Rs 2,428.20.
On the National Stock Exchange (NSE), shares closed with gains of 109.2 percent at Rs 3,117.25 after hitting a day's high of Rs 3,129.0 and low of Rs 2,436.05.
It traded with volumes of over 1.26 crore shares on the NSE and 10.36 lakh shares on BSE.
Indigo Paints mopped up Rs 1,170 crore via public issue during January 20-22, of which net fresh issue proceeds (out of Rs 300 crore) will get utilised for capacity expansion at Pudukkottai. The company has three manufacturing facilities in Kochi, Jodhpur and Pudukkottai.
The funds will also be used for purchase of tinting machines and gyroshakers, repayment of debts and general corporate purposes.
Indigo Paints shares surge 110% intraday: Should investors hold or book profit?
Indigo Paints, the fastest growing amongst the top five paint companies in India, manufactures a complete range of decorative paints including emulsions, enamels, wood coatings, distempers, primers, putties and cement paints.
The company has been gaining market share. Angel Broking believes it will continue to gain market share in the upcoming years also due to the strong management team, strategies planned by the company and smaller base compared to top four players.
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