Indigo Paints' slips 6% after 4.03 mn shares change hands via block deals

Large deals of 4.03 million shares took place in Indigo Paints, with Peaky XV Partners likely to be the sellers, according to reports

Indigo Paints shares declined 5.9 per cent and clocked an intraday low of Rs 1,452.1 on the BSE. Large block deals in early trades created a run on the company's stock price.

However, at around 11:18 AM, shares of Indigo Paints had recovered from their intraday lows, and they were trading 3.69 per cent lower at Rs 1,482.65 per share. Names of the buyers and sellers involved in the block deals could not be ascertained.

As per BSE data, 4.03 million shares had changed hands via multiple block deals in the first few hours.

As per reports, Peaky XV Partners  were the likely sellers of an 11 per cent stake in the company at Rs 1,470 per share. The offer size was estimated at around Rs 770 crore.

 

Under the public shareholding data available on the BSE, Peak XV Partners Investments IV holds a 12.14 per cent stake in the company, while and Peak XV Partners Investments V holds a 13.09 per cent stake.

Indigo Paints is a leading Indian paint company that offers a wide range of decorative and industrial coatings. The company was founded in the year 2000, and has since grown to become one of the fastest-growing paint companies in India.

How did Indigo Paints fare in Q1FY25?

Indigo Paints' consolidated net profit declined 15.4 per cent year-on-year (Y-o-Y) to Rs 26.7 crore, compared to Rs 31.52 crore in the same quarter of the corresponding year.

The company's revenue from operations grew 7.7 per cent to Rs 311 crore, compared to Rs 288.4 crore in the year-ago period. Its earnings before interest, tax, depreciation and amortisation (Ebitda) stood at Rs 47.4 crore, compared to Rs 49.1 crore in the year-ago period, which is a decline of 3.4 per cent . Y-o-Y.

In its Q1FY25 guidance, the company's management had said that  Indigo Paints expects to continue to outpace the industry's growth and anticipates a return to double-digit growth as its underlying growth improves.

Further, they expect margins to expand on the back of price hike and upcoming festive season in Q3FY25.

Additionally, the Ebitda margin for FY25 is expected to increase slightly, although quarterly variations will be visible due to changes in product mix and advertising outlay.

In the past one year, Indigo Paints shares have lost 3 per cent, compared to the BSE Sensex's rise of 25 per cent during the period.