New Delhi: Sequoia Capital, a venture capital firm, will sell a 3.3 percent equity investment in IndiGo Paints in a block auction on November 8, according to CNBC TV-18, citing persons familiar with the situation.

Sequoia will sell the interest in a deal worth $30 million, or roughly Rs 235 crore, according to people acquainted with the situation who spoke to the TV channel.

According to the report, the deal’s floor price is Rs 1,315 per share. After the agreement, there will be a 90-day lockup period in place.

Sequoia Capital owned a total of 13.73 percent of IndiGo Paints as of September 30, 2022, according to the ownership information disclosed with the BSE.

Hemant Jalan, chairman and managing director of Indigo Paints, thanked Sequoia for pressuring the company to increase its top line and make risky ventures in Moneycontrol’s Life After Listing episode in July. Their entry as equity partners eight years was a “major turning point and a very, very major milestone in the history of the company”, he had said.

Nearly a week after IndiGo Paints released positive Q2 results, with the company’s net profit rising by 174 percent on-year to Rs 37.1 crore, the news that Sequoia is trying to sell 3.3 percent interest via block deal surfaced. The operating revenue for the September 2022 quarter was Rs 242.6 crore, up 23.7 percent from the corresponding time last year.

Following the release of the quarterly results on November 3, IndiGo Paints’ stock surged by 13 percent before finishing at Rs 1,589 per share on the BSE, or almost nine percent above the previous day’s close.

The stock’s BSE closing price on November 7 was Rs 1,492, which was about Rs 50 less than the previous closing price.