Indigo Paints stock saw as much as 25 percent equity stake being sold for about Rs 1,750 in block deals on 6 September, with Peak XV Partners offloading part of their shareholding. The deal is much larger than expected per an earlier report.
A total of 1.17 crore shares of Indigo Paints were sold, with Peak XV offering up to 52 lakh shares (which aggregates to about 11 percent stake in the company), reported Bloomberg citing terms.
The sale was at Rs 1,493 per share, reported CNBC TV18. The floor price for the block deals was set at Rs 1,470 per share, representing a 4.6 percent discount to Indigo Paints closing price of Rs 1,534 on 5 September.
Another news report said that equity stake worth Rs 2,329 crore was sold.
Indigo Paints stock fell. It was trading at Rs 1,485 on NSE on 6 September, down 3.6 percent from the previous close.
Earlier yesterday, Moneycontrol reported that venture capital and growth investing firm Peak XV Partners (formerly known as Sequoia India) was looking to offload an 11 percent stake in Indigo Paints for about Rs 780 crore, with Jefferies acting as the advisor on the transaction.
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Peak XV Partners held a 25.23 percent equity stake in Indigo Paints, as of the last update shared with the stock exchanges. The investment firm partnered with Indigo Paints in the year 2014, according to its website.
Indigo Paints, which was founded in the year 2000, had its IPO in 2021. The stock has fallen as much as 42 percent since its debut. It has also underperformed this year, rising less than 3 percent since January, far slower than the Nifty’s 15 percent gain. Analysts are optimistic about Indigo Paints’ growth due to brand acceptance and a wider distribution network but warn of competitive risks.
The share sale in Indigo Paints marks another significant monetisation move by Peak XV in recent months. The firm has been actively reducing its stakes in portfolio companies such as Go Fashion, Five Star Business Finance, and Aptus Value Housing.
Peak XV Partners is the India and Southeast Asia arm of Sequoia Capital, a global venture capital firm that was originally founded in 1972. Peak XV Partners underwent a rebranding in 2023, changing its name from Sequoia India to Peak XV Partners as part of a broader restructuring of Sequoia Capital's global operations.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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