The allotment process will be keenly tracked, as the stock has continued to command a high premium in the grey market, despite Aditya Birla Group’s flagship Grasim Industries’ announcing a foray into the oligopolist sector.
Indigo Paints IPO, which was sold from January 20 to January 22 in the Rs 1,488-1,490 price band, saw the retail portion receiving 15.93 times bids. The quota for HNIs was subscribed 263 times while that of qualified institutional buyers (QIBs) by 189.57 times.
At the upper limit of the price band, the paints maker is targeting a market cap of Rs 7,100 crore. This implies a price to earnings (P/E) multiple of 66 times expected FY22 earnings and 44 times its FY23 earnings, assuming an earnings CAGR of 50 per cent over FY20-23, analysts said.
In a note to clients, YES Securities said Indigo Paints can command a price multiple of 60 times on expected FY23 earnings compared with Asian Paints’ 62 times and Berger Paints’ 73 times FY23 earnings.
At those multiple, YES Securities finds the fair value of the stock Rs 2,050 against the IPO price of Rs 1,490, implying a 37 per cent upside. Last heard, grey market trend for stock stood at Rs 895. That premium suggests the grey market was assigning a 60 per cent premium (Rs 2,385 over Rs 1,490) to the stock so far.
Investors can check the subscription status on the online portal of Link Intime India Private, the registrar to the issue. The registrar is a Sebi-registered entity, qualified to act as such, and which electronically processes all applications and carries out the allotment process as per the prospectus.
On Link Intime’s web portal (https://www.linkintime.co.in/IPO/public-issues.html) one needs to select the IPO whose data will be populated only when the basis of allotment is declared. One also needs to provide PAN ID or application ID or client ID and DPID (depository participant identification) to fetch the information.
The registrar is responsible for complying with the timelines for updating the electronic credit of shares to successful applicants, dispatch and uploading of refunds and attending to all investor-related queries after the issue is completed.
Another way of checking the allotment status is via stock exchange. On BSE, one can click here https://www.bseindia.com/investors/appli_check.aspx
As per the IPO prospectus, the refund process would be initiated on Friday. The credit of shares to demat accounts will be done on Monday and the stock is likely to be listed by Tuesday.