Stove Kraft proposes to utilise the net proceeds from the fresh issue towards repayment or pre-payment of certain borrowings availed by the firm.
The initial public offer of Indigo Paints was subscribed 1.90 times on the first day of bidding on Wednesday.
The offer received bids for 1,04,67,410 shares against 55,18,402 shares on offer, as per data available with NSE.
The portion reserved for qualified institutional buyers (QIBs) was subscribed 10 per cent, non institutional investors 1.10 times and retail individual investors (RIIs) 3.29 times.
The initial public offer comprises a fresh issue of up to Rs 300 crore and an offer for sale of up to 58,40,000 shares.
The price range for the offer has been fixed at Rs 1,488-1,490 per share.
At the upper end of the price band, the initial public offer (IPO) is expected to fetch Rs 1,170.16 crore.
Sequoia Capital-backed Indigo Paints on Tuesday said it has mopped up Rs 348 crore from anchor investors.
Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities are the managers to the offer.
Proceeds from the fresh issuance of shares would be used to expand the existing manufacturing facility at Pudukkottai in Tamil Nadu, purchasing tinting machines and gyro shakers and repayment/prepayment of borrowings.
The Pune-based company manufactures a range of decorative paints and has an extensive distribution network across the country.
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