Sequoia Capital-backed Indigo Paints has filed initial papers with SEBI to raise about ₹1,000 crore through an Initial Public Offering (IPO), comprising a fresh issuance of stocks and an offer-for-sale.
The net proceeds from the issue would be used for expansion of its existing manufacturing facility at Pudukkottai, purchase of tinting machines and gyro shakers and payment of the debt, according to the Draft Red Herring Prospectus (DRHP) filed by the company.
The IPO could consist of a fresh issuance to ₹300 crore and an OFS of up to 58,40,000 equity shares by Sequoia Capital (through its two funds SCI Investments IV and SCI Investments V) and promoter Hemant Jalan.
While the company did not divulge the quantum of funds it intends to raise through the IPO, market sources pegged it at ₹1,000 crore.
The Pune-based company manufactures a range of decorative paints including emulsions, enamels, wood coatings, distempers, primers, putties and cement paints under the brand Indigo. It has a distribution network across 27 states and seven union territories particularly in Kerala, West Bengal, Bihar, Jharkhand, Chhattisgarh, Odisha and Uttar Pradesh.
As of September 30, 2020, the company has three manufacturing facilities in Rajasthan, Kerala and Tamil Nadu.
Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities are the book running lead managers to the issue, while Link Intime is the registrar.