Sequoia will sell the interest in a deal worth $30 million, or roughly 235 million rupees, according to people familiar with the situation who spoke to the TV channel.
According to the report, the floor price of the deal is Rs 1,315 per share. After the settlement, there will be a 90-day closing period.
Sequoia Capital held a total of 13.73 percent of IndiGo Paints as on September 30, 2022, according to ownership information disclosed to the BSE.
Hemant Jalan, chairman and managing director of Indigo Paints, credited Sequoia for pushing the company to grow its top line and take on risky ventures in Moneycontrol’s Life After Listing episode in July. Their entry as partners of eight years marked a “major turning point and a very, very important milestone in the history of the firm,” he had said.
Almost a week after IndiGo Paints posted positive Q2 results, with the company’s net profit rising 174% year-on-year to Rs 37.1 crore, news emerged that Sequoia is looking to sell 3.3% of ‘interest through a block agreement. Operating income for the September 2022 quarter was 242.6 million rupees, up 23.7 percent from the corresponding period last year.
After the release of quarterly results on November 3, shares of IndiGo Paints rose 13 percent before ending at Rs 1,589 per share on the BSE, or nearly nine percent above the previous day’s close .
The BSE closing price of the stock on November 7 was Rs 1,492, which was about Rs 50 less than the previous closing price.