Indian regulator OKs Sequoia Capital-backed Indigo Paints planned IPO – Livemint

Sequoia Capital India Advisors Pvt. Ltd.-backed decorative-paint maker Indigo Paints Ltd. secured approval from the Indian capital markets regulator Sebi to raise about 10 billion rupees in an IPO, Livemint reported Jan. 4.

The company received approval Dec. 31, 2020, following the filing of its preliminary IPO prospectus in November 2020, according to the report.

The IPO consists of newly issued shares totaling 3 billion rupees and an offer-for-sale of as much as 58,400,000 equity shares by the buyout firm through its two vehicles, namely SCI Investments IV and SCI Investments V, and promoter Hemant Jalan, the report said, citing the preliminary prospectus.

Indigo Paints will use the proceeds from the IPO to expand its existing manufacturing facility in Tamil Nadu, India; to acquire tinting machines and gyro shakers; and to repay or prepay its debt, the report noted.

Kotak Mahindra Capital Co., Edelweiss Financial Services and ICICI Securities are the lead bookrunning managers for the IPO.

As of Jan. 4, US$1 was equivalent to 73.06 Indian rupees.