Indigo Paints has received approval from the capital markets regulator SEBI to raise money through an initial public offering (IPO). The Sequoia Capital-backed Indigo Paints had filed its preliminary IPO papers with Sebi in November last year. The shares of Indigo Paints are likely to be listed on the BSE Sensex and NSE Nifty indices.
The IPO will comprise fresh issuance of shares aggregating to Rs 300 crore and an offer-for-sale of up to 58,40,000 equity shares by private equity firm Sequoia Capital, through its two funds SCI Investments IV and SCI Investments V, and promoter Hemant Jalan, according to the company’s draft red herring prospectus (DRHP) filed with SEBI.
Indigo Paints will use the IPO proceeds to expand its manufacturing facility at Pudukkottai in Tamil Nadu, purchase tinting machines and repay / prepay existing borrowings.
Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities will be the book running lead managers to the public issue.
Hemant Jalan, Anita Jalan, Parag Jalan, Kamala Prasad Jalan, Tara Devi Jalan and Halogen Chemicals are the promoters of Indigo Paints.
Indigo Paints is headquartered in Pune and has three facilities in Rajasthan, Kerala and Tamil Nadu. It manufactures a range of decorative paints such as enamels, emulsions, wood coatings, primers and distempers.