Indigo Paints has filed preliminary papers with market regulator SEBI to raise approximately Rs 1,000 crore through an initial public offering. The IPO is a fresh issuance aggregating to Rs 300 crore and an offer for sale of up to 58,40,000 equity shares of the face value of Rs 10 each.
The investors selling the shareholdings are Sequoia Capital through its two funds SCI Investments IV and SCI Investments V; and promoter shareholder, Hemant Jalan, according to the Draft Red Herring Prospectus (DRHP).
Net proceeds from the issue would be used for expansion of the existing manufacturing facility at Pudukkottai in Tamil Nadu, for purchasing of tinting machines and gyro shakers, and repayment/prepayment of borrowings.
According to market sources, the initial public offering (IPO) is expected to fetch Rs 1,000 crore.
As of September 30, 2020, the company has three strategically located manufacturing facilities in India in the states of Rajasthan, Kerala, and Tamil Nadu. Indigo has an extensive distribution network across 27 states and 7 union territories.
Kotak Mahindra Capital Company, Edelweiss Financial Services, ICICI Securities are the BRLMS, and Link Intime is the registrar to the Issue. The Pune-based company manufactures a range of decorative paints and has an extensive distribution network across the country.