Peak XV Partners Investments (formerly Sequoia India) has upsized its Indigo Paints' block deal launched late on September 5 from the earlier size of Rs 750-Rs 800 crore to Rs 1,550 crore, multiple industry sources in the know told Moneycontrol on the condition of anonymity.
"On the back of strong demand, the deal size has been increased, and now Peak XV Partners has sold 22 per cent instead of the earlier proposed 11 percent dilution," said one of the persons above.
As per exchange data, Peak XV Partners Investments currently holds 25.23 per cent stake in Indigo Paints. Post the upsized block deal, Peak XV Partners will hold onto the balance stake of around 3.23 percent, sources added.
Moneycontrol was the first to report the block trade launch on September 5.
The report said that the floor price of the block deal is Rs 1,470 per share, a discount of 4.6 percent to the closing price of Indigo Paints on September 5. It added that investment bank Jefferies is acting as the advisor on the deal.
Peak XV Partners Investments declined to comment and Jefferies couldn't be reached for an immediate response.
In the past 12-18 months, Peak XV has also been monetising stake in other firms like Go Fashion, Five Star Business Finance and Aptus Value Housing. "Given the relatively small scale of Indigo Paints in the large paints industry, the company has been able to grow much faster than the industry. Rising brand acceptance by consumers and the expansion of its distribution network have been driving the outperformance. However, the changing competitive landscape will be a key monitorable," said brokerage Motilal Oswal in a report on the firm released in August.
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