Abu Dhabi Investment Authority (ADIA) invested in Indigo Paints on Tuesday when the consumer company made its stellar debut in the public market.
Indigo Paints is ADIA’s third bet in the consumer-facing chemicals space. The sovereign fund holds minority stakes in listed firms Aarti Surfactants Ltd and Galaxy Surfactants Ltd.
In Indigo Paints, ADIA bought 6,41,953 shares at Rs 2,730 apiece through a bulk deal on the National Stock Exchange, representing a 1.35% stake in the company. The purchase cost works out to Rs 175 crore.
Indigo Paints opened at Rs 2,607.5 in its listing on Tuesday, a 75% premium to its issue price before hitting the upper circuit.
The boom in the stock price came after the budget on Monday which included a proposal to extend a tax holiday for low-cost housing projects.
Apart from ADIA, a few more foreign institutional investors picked up stakes in Indigo Paints on the day of its listing.
Dubai-based Al Mehwar Commercial Investments bought 4,13,846 shares at Rs 2,774.47 each representing a 0.87% stake in the company.
Ashoka India Opportunities Fund, managed by White Oak Capital, invested in 5,38,135 shares at an average price of Rs 2,719.79 apiece, representing a 1.13% stake.
Nomura India Investment Mother Fund picked up 5,30,868 shares for Rs 2,601.54 each for a 1.12% stake.
ADIA, which is ramping up capacity to invest more in India, has been building its team over the last few years, especially after Kabir Mathur took over as India and Southeast Asia in 2018.
The fund makes direct investments in India and co-investments as a limited partner in other global and domestic funds that invest in the country.
ADIA’s largest direct investment till date has been in Reliance Retail Limited. It acquired a 1.16% stake in the company for about $752 million in July last year.
Previously, the fund made investments in companies like Rosari Biotech, Reliance Nippon Asset Management, Securities Intelligence Services (India) and Central Depository Services (India) Limited ahead of their IPOs.
Indigo Paints is a Sequoia Capital-backed company. Sequoia’s bet on the firm led to multibagger returns within seven years.
Sequoia, which sold a part of its holding through an offer-for-sale, retains about 30% stake in the company.