Indigo Paints shares drop 6% after Rs 180-crore stake sale via block deal
Indigo Paints fell by 5.7% to a low of Rs 1,452.10 on the BSE during early trading today. This decline followed a block deal estimated at Rs 179.2 crore, representing 2.5% of the company's equity, at Rs 1,493 per share.
Reportedly, 1.2 crore shares were traded in the transaction, with Peak XV Partners Investments (formerly Sequoia India) likely being the seller.
The official parties to the transaction, however, are not yet known.
It was previously reported that Peak XV Partners Investments is likely to offload a Rs 750-crore stake in Indigo Paints.
As of the quarter ended June 2024, Peak XV Partners Investments V held a 13.09% equity stake in Indigo Paints, representing 62.34 lakh shares. Meanwhile, Peak XV Partners Investments IV held a 12.14% equity stake, with a holding of approximately 57.8 lakh shares.
Shares of Indigo Paints along with other paint companies were in focus this week as the crude prices have witnessed declines in the last few days. The surge in the stock prices is directly attributable to the fall in the prices of crude as it is a crucial input for producing certain raw materials used in paint manufacturing, such as solvents and resins.
On the charts, the stock is performing well above its exponential moving averages (EMAs), including the 10-day, 20-day, 50-day, and 100-day EMAs. The Relative Strength Index (RSI) indicates that the stock is oscillating near the 70 mark, which is approaching overbought territory.
Over the past year, the stock has declined by approximately 6.5%, and so far
