American venture capital firm Sequoia Capital-backed Indigo Paints, on January 19, garnered Rs 347.9 crore from 25 anchor investors ahead of its initial public offering (IPO), that opens for subscription on January 20.
The company informed exchanges that it has finalised the allocation of 23,35,020 equity shares to anchor investors, at a price of Rs 1,490 apiece, the higher end of price band.
Marquee names which participated in the anchor book included Government of Singapore, Smallcap World Fund, Fidelity, Goldman Sachs, Government Pension Fund Global, Nomura, HSBC, Pacific Horizon Investment Trust, Carmignac Portfolio, Theleme Master Fund, Matthews India Fund, Jupiter and Virtus Kar Emerging Markets Small-Cap Fund.
Among domestic institutions, SBI MF, HDFC MF, ICICI Prudential MF, Nippon MF, Axis MF, Aditya Birla Sun Life and Motilal MF received shares of the company via anchor book.
Indigo Paints, one of the fastest growing amongst the top five paint companies in India, aims to raise Rs 1,170 crore through its IPO.
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The IPO comprises a fresh issue of Rs 300 crore by the company and an offer for sale of 58,40,000 equity shares by promoter Hemant Jalan and investors (Sequoia Capital India Investments IV and SCI Investments V).
The price band for the issue, which will close on January 25, has been fixed at Rs 1,488-1,490 per share.
The fifth largest company in the Indian decorative paint industry will utilise the fresh issue funds for expansion of the existing manufacturing facility at Pudukkottai, Tamil Nadu by setting up an additional unit adjacent to the existing facility (Rs 150 crore); purchase of tinting machines and gyroshakers (Rs 50 crore); repayment certain of borrowings (Rs 25 crore); and general corporate purposes.
Equity shares are proposed to be listed on the BSE and NSE. Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities are the book running lead managers to the offer.