Indigo Paints’ 25% equity change hands; stock slips ~5%

6 Sep 2024 , 10:07 AM

On Friday, September 6, 1.2 Crore shares, or 25% of Indigo Paints’ equity, were sold in block deal for ₹1,493 each.

Following this development, the company’s counter slipped as much as 6% in Friday’s morning session.

At around 9.58 AM, Indigo Paints was trading 3.61% lower at ₹1,485 per piece, against the previous close of ₹1,540.55 on NSE. The counter touched an intraday low of ₹1,453.

On Thursday, September 5, Peak XV Partners announced a block transaction to sell an 11% share in the Pune-based company.

According to sources, the offer price for the shares was ₹1,470 per share, with a total deal value of ₹770 Crore. A 90-day lock-up term is imposed on the party.

According to records accessible on the Bombay Stock Exchange, Peak XV Partners owned 25.23% of Indigo Paints at the end of the June quarter. Peak XV Partners Investments IV held 12.14% of the stock, while Peak XV Partners Investments V owned 13.09%.

Last month, Indigo Paints stated that it anticipates gross margins to fall by 2% following price increases in late July and early August. The company’s Chairman and Managing Director, Hemant Jalan, reported a 2% growth on a weighted average basis throughout the product portfolio.

Indigo Paints saw an 8% growth in revenue to ₹310 Crore in the first quarter of FY 25. However, profit fell 15% to ₹27 Crore. In a post-earnings call, management discussed a slowdown in Kerala, a significant revenue region.

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