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Indigo Paints Gets Sebi Approval To Float IPO

Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities are the book running lead managers to the issue.

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Indigo Paints, which filed its preliminary IPO papers with Sebi in November, obtained its observation on December 31.

Sequoia Capital-backed Indigo Paints has received capital markets regulator Sebi’s approval to raise about Rs 1,000 crore through an initial public offering.

The IPO comprises 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 draft red herring prospectus (DRHP).

Indigo Paints, which filed its preliminary IPO papers with Sebi in November, obtained its observation on December 31, an update with the capital markets watchdog showed on Monday.

Sebi’s observation is very necessary for any company to launch public issues, including initial share-sale, follow-on public offer and rights issue.

Proceeds from the fresh issuance of shares would be used for expansion of the existing manufacturing facility at Pudukkottai in Tamil Nadu, purchase of tinting machines and gyro shakers, and repayment/prepayment of borrowings.

According to market sources, the initial public offering (IPO) is expected to fetch Rs 1,000 crore.

Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities are the book running lead managers to the issue.

The Pune-based company manufactures a range of decorative paints and has an extensive distribution network across the country.

As of September 30, 2020, the company has three manufacturing facilities located in Rajasthan, Kerala and Tamil Nadu.

Source: PTI

This story has been published from a wire feed without modifications to the text. Only the heading has been changed)

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