Indigo Paints IPO opens next week as Sequoia Capital, the promoter seeks to reduce its stake; check details


Indigo Paints’ public offering will consist of a new issue of Rs 300 crore shares and an OFS of 58.4 lakh shares.

Indigo Paints’ Initial Public Offering (IPO) will open underwriting next week, paving the way for its highly anticipated debut on Dalal Street. Sequoia Capital-backed Indigo Paints IPO, which received the green light from the Securities and Exchange Board of India (SEBI) earlier this month, will open for subscription on January 20 and close. January 22. crore financial markets with a combination of new issues and an offer to sell (OFS) by existing shareholders of the company. It will be one of the first IPOs of 2021. In the previous year 2020, no less than 15 companies debuted on the stock exchange.

Indigo Paints’ public offering will consist of a new issue of Rs 300 crore shares and an OFS of 58.4 lakh shares. Existing shareholders looking to sell part of their stakes in Indigo Paints include venture capital firm Sequoia Capital, SCI Investments and promoter Hemant Jalan. While Sequoia seeks to sell 20 lakh shares out of the 85.34 lakh shares it currently owns, SCI Investments will dispose of 21.65 lakh shares out of the 92.08 lakh currently held. Hemant Jalan owns 1.02 crore of the company’s shares and will reduce his stake by 16.7 lakh shares. Indigo Paints has not yet disclosed the issue price of its IPO. However, it is likely to be between Rs 1,480 and Rs 1,500 per share, two traders trading in unlisted stocks told The Bharat Express News Online.

The par value of the shares has been set at Rs 10 each by Indigo Paints. The company will not receive any funds from FSO revenues. However, from the proceeds of the new show, Indigo Paints plans to fund capital expenditures for the expansion of the existing manufacturing plant in Pudukkottai, Tamil Nadu. At the same time, he plans to buy tinting machines and gyroshakers and prepay / repay all or part of the company’s loans.

Indigo Paints is the fifth largest company in the Indian decorative painting industry in terms of operating revenue for fiscal 2020. “The company has achieved this position in a highly competitive Indian decorative painting industry through its approach. multi-pronged. Axis Securities said in a note. Indigo Paints has an extensive distribution network in 27 states and seven Union Territories.

Financially, the company reported a net profit of Rs 27.21 crore at the end of September last year. Operating income during the same period amounted to Rs 259.42 crore. In fiscal year 2020, Indigo Paints reported income of Rs 624.79 crore and net profit of Rs 47.82 crore.

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