Peak XV Partners Divests 22% Stake in Indigo Paints, Morgan Stanley Invests

Peak XV Partners, previously known as Sequoia Capital India and SEA, divested over 22% of its stake in Indigo Paints on Friday. The shares were sold to investors including Morgan Stanley, Mercer, and HDFC Mutual Fund for Rs 1,557 crore through open market transactions. This information was revealed through bulk deal data on the NSE.

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Stake Reduction Details

Peak XV Partners, via its affiliates Peak XV Partners Investments IV and V, offloaded a total of 1.05 crore shares. This amounted to a 22.04% stake in Indigo Paints, headquartered in Pune. The shares were sold within the price range of Rs 1,475.96 to Rs 1,489.35 each, bringing the total transaction value to Rs 1,557.05 crore.

Following this transaction, Peak XV Partners Investments IV's shareholding decreased from 12.14% to 1.54%. Similarly, Peak XV Partners Investments V's stake reduced from 13.09% to 1.65%. The shares were acquired by HDFC Mutual Fund, Mercer, and Morgan Stanley at prices ranging from Rs 1,470 to Rs 1,491.88 per share.

Acquisitions by Investors

HDFC Mutual Fund purchased 10.04 lakh shares or a 2.11% stake in Indigo Paints. Mercer acquired 3.18 lakh shares while Morgan Stanley bought 3.08 lakh shares of the company. These acquisitions collectively amounted to Rs 240.65 crore according to NSE data.

Indigo Paints' stock price fell by 4.19%, closing at Rs 1,476 per share on the NSE after these transactions.

Company Background and Rebranding

Peak XV Partners rebranded itself from Sequoia India in 2023 as part of a global restructuring of Sequoia Capital's operations. Indigo Paints, established in 2000, is noted as the fastest-growing among India's top five paint companies.

In another transaction on the NSE, Shriram Pistons & Rings promoters reduced their stake by 3%. Luv D Shriram and Meenakshi Dass sold a combined total of 6.60 lakh shares each through open market transactions for over Rs 289 crore.

Shriram Pistons & Rings Transaction

The shares were sold between Rs 2,181.77 and Rs 2,197.60 apiece, making the deal worth Rs 289.25 crore. Astral Indian Equities Fund I, DSP Mutual Fund, East Lane Capital LLP, Tata Mutual Fund, and Theleme India Master Fund acquired these shares at the same price.

Shriram Pistons & Rings' stock increased by 1.48%, closing at Rs 2,229.95 per share on the NSE.

These transactions highlight significant movements in shareholdings within prominent Indian companies and reflect ongoing investment activities in the market.