The initial public offering (IPO) of Indigo Paints, the fifth-largest decorative paints company in India, was subscribed 6.97 times on the second day of bidding.

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The reserved portion of retail investors was subscribed 9.6 times and that of employees was 1.8 times. The portion set aside for qualified institutional buyers has been subscribed 3.8 times and non-institutional investors have put in 5.4 times bids against their reserved portion.

The IPO comprises of fresh issuance of Rs 300 crore and an offer-for-sale of up to 58,40,000 equity shares by promoters as well as investors.

The offer will close on January 22. The price band for the issue has been fixed at Rs 1,480 and Rs 1,500 per share. At the upper end of the price band, the IPO is expected to fetch Rs 1,170.16 crore.

READ MORE: Here's why you should subscribe Indigo Paints IPO

The anchor book witnessed good response from investors, including global investors and domestic asset management companies.

Yesterday, it announced that it has raised Rs 348 crore from 25 anchor investors. The Sequoia Capital-backed company informed bourses that it has allocated shares worth Rs 348 crore at Rs 1,490 per share to anchor investors.

The company will use Rs 150 crore from the proceeds of the fresh issue to expand its existing manufacturing facility at Pudukkottai, Tamil Nadu; Rs 50 crore to purchase equipment and Rs 25 crore to repay debt and general corporate purposes.

First Published:Jan 21, 2021 1:00 PM IST