 "Peak XV Partners divests 22% stake in Indigo Paints for ₹1,557 crore as shares drop by 4.19%.")
Peak XV Partners, formerly known as Sequoia Capital India and SEA, has sold over 22 percent of its stake in Indigo Paints for Rs 1,557 crore. This divestment involved the sale of approximately 1.05 crore shares through the National Stock Exchange, with shares priced between Rs 1,475.96 and Rs 1,489.35. Following the transaction, Peak XV’s holdings dropped significantly, while notable buyers included HDFC Mutual Fund, Mercer, and Morgan Stanley. After this sale, shares of Indigo Paints saw a decline of 4.19%, closing at Rs 1,476. Established in 2000, Indigo Paints is now one of the fastest-growing paint companies in India.
On September 6, 2024, Peak XV Partners, previously known as Sequoia Capital India, sold over 22 percent of its stake in Indigo Paints for approximately Rs 1,557 crore. This divestment involved selling around 1.05 crore shares to several investors, including Morgan Stanley, Mercer, and HDFC Mutual Fund, through open Market transactions. The shares were sold in a price range of Rs 1,475.96 to Rs 1,489.35 each.
Following this sale, Peak XV Partners Investments IV and V saw their stakes drop significantly. The shareholding of Peak XV Partners Investments IV went from 12.14 percent to just 1.54 percent, while Peak XV Partners Investments V’s stake fell from 13.09 percent to 1.65 percent. HDFC Mutual Fund acquired 10.04 lakh shares, accounting for 2.11 percent of Indigo Paints, while Mercer and Morgan Stanley bought 3.18 lakh and 3.08 lakh shares, respectively.
Despite this significant investment activity, shares of Indigo Paints fell by 4.19 percent, closing at Rs 1,476 each. It’s worth noting that Peak XV Partners rebranded in 2023 as part of a restructuring effort within its global operations. Established in 2000, Indigo Paints is recognized as one of the fastest-growing paint companies in India.
This recent transaction highlights the dynamic nature of investments in the Indian paint Market, which is seeing increasing interest from major financial institutions and venture capital firms.
Indigo Paints, Logo paints
Last Updated: Sep 06 2024 | 8:25 PM IST
Read time: 2 min
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What does Peak XV Partners selling a stake in Indigo Paints mean?
It means that Peak XV Partners is selling part of their ownership in Indigo Paints to someone else.
How much of their stake did Peak XV Partners sell?
They sold 22% of their ownership in Indigo Paints.
How much money did they get from the sale?
They received Rs 1,557 crore from selling that stake.
Why would they sell part of their stake?
They might want to make a profit, raise cash for other investments, or adjust their investment strategy.
What does this sale mean for Indigo Paints?
It could mean a change in their ownership structure, but the company can continue to grow and operate as usual.
