Indigo Paints saw a massive 25% equity stake sold for around Rs 1,750 crore in block deals on September 6, with Peak XV Partners (formerly Sequoia India) offloading part of its holding. Peak XV sold 11% of its stake, or 52 lakh shares, at Rs 1,493 per share, a 4.6% discount to the previous closing price of Rs 1,534 on September 5.
Bloomberg reported a total of 1.17 crore shares exchanged hands, while CNBC TV18 noted the floor price for the deal was set at Rs 1,470 per share. Another report indicated that equity worth Rs 2,329 crore was sold.
Indigo Paints fell 3.6% to 1,485 rupees on NSE after the block deal. So far this year, its stock has underperformed by rising less than 3% against Nifty’s 15% gain this year, is 42% off its 2021 IPO price.
Peak XV had invested in Indigo Paints in 2014 and held a stake of around 25.23% in the company besides its investment. The firm has been offloading stakes in various portfolio cos such as Go Fashion, Five Star Business Finance and Aptus Value Housing, as part of a broader strategy post rebranding from Sequoia India in 2023.
Analysts stay positive on Indigo Paints, as brand growth and distribution networks are seen to be encouraging, with competitive risks now tapering.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
News Desk
