Sequoia Capital-backed Indigo Paints has filed preliminary papers to raise about Rs 1,000 crore through an IPO (initial public offering). The IPO comprises fresh issuance of stocks 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).
The net capital which will come from the issue will be used for purchasing tinting machines and gyro shakers and repayment/prepayment of borrowings. The capital will also be used in the expansion of the company manufacturer in Tamil Nadu.
Indigo paints, a Pune based company has three manufacturing facilities located in Rajasthan, Tamil Nadu, and Kerala. The company manufactures a range of decorative paints and has distribution networks across the country.