Indigo Paint's IPO may fetch 3.5x returns for Sequoia in partial exit

The fund-raising comes at a time when the company plans to penetrate cities and scale up investments and become a key player in the industry

Indigo Paints' proposed IPO next year is expected to give 3-3.5-fold returns to private equity investor Sequoia. The company's proposed Rs 1,000 crore plan would partially support capex spending of Rs 100 crore every year. 

The company has hired an investment bank for the proposed IPO and aims to achieve Rs 3,000 crore in revenue in the next five years. It did not reveal the name of the investment bank.

Started by 60-year-old IITian Hemant Jalan, Indigo Paints has reported a revenue of Rs 600 crore in 2019, as against Rs 12 crore in FY 2009. This, in an industry that has been