Venture capital firm Sequoia Capital will sell 3.3 percent equity stake in IndiGo Paints through block deal on November 9, CNBC TV-18 reported, citing sources who are privy to the development.
The stake would be offloaded by Sequoia in a trade amounting to $30 million or approximately Rs 235 crore, the persons familiar with the details told the news channel.
The floor price for the deal is Rs 1,315 per share, the report said. A lockup period of 90 days will come into effect following the deal, it added.
As of September 30, 2022, Sequoia Capital held a total of 13.73 percent stake in IndiGo Paints, as per the shareholding pattern shared with the BSE.
In Moneycontrol's Life After Listing episode in July, Indigo Paints’ chairman and managing director Hemant Jalan credited Sequoia for pushing the company to grow its top line and taking aggressive bets. Their entry as equity partners eight years was a "major turning point and a very, very major milestone in the history of the company", he had said.
The news of Sequoia looking to sell 3.3 percent stake via block deal comes nearly a week after IndiGo Paints posted strong Q2 results, with the company's net profit climbing by 174 percent on-year to Rs 37.1 crore.
Revenue from operations during the September 2022 quarter came in at Rs 242.6 crore, which was 23.7 percent higher as compared to the year-ago period.
After the quarterly results were declared on November 3, IndiGo Paints' shares had shot up by 13 percent at the stock market, before settling at Rs 1,589 apiece at the BSE, which was nearly nine percent higher as against the previous day's close.
On November 7, the stock closed at Rs 1,492 per share at the BSE, which was around Rs 50 lower as compared to the last closing price.
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