Shares of Indigo Paints Ltd. fell over 10 percent in intra-day trade on Wednesday after 21 lakh shares or 4.4 percent of the total equity exchanged hands on the National Stock Exchange.
Following the deal, the IndiGo Paints stock hit a low of Rs 1,343 apiece. The stock has nearly halved from its peak of Rs 2,375.
On November 8, sources had told CNBC-TV18 that venture capital firm Sequoia will sell 3.3 percent equity in Indigo Paints worth Rs 235 crore, with a floor price set at Rs 1,315 per share.
According to shareholding data shared with BSE, Sequoia Capital held a total of 13.73 percent stake in Indigo Paints as of September 30, 2022.
On November 3, IndiGo Paints had announced that its net profit grew by a whopping 174 percent year-on-year to Rs 37.1 crore during the quarter ended September 2022. Revenue from operations stood at Rs 242.6 crore, up 23.7 percent compared to the year-ago period.
After the earnings, ICICI Securities maintained its ‘hold’ rating on the stock with a target price of Rs 1,680. It said that while Indigo’s Q2FY23 results were largely in-line with estimates, the company managed to perform on a par with its peers.
