Sequoia Capital-backed Indigo Paints, on January 12, has fixed a price band of Rs 1,488-1,490 a share for its initial share. The issue opens on January 20 and closes on January 22.

The IPO comprises fresh issuance of stocks aggregating to Rs 3 billion and an offer-for-sale of up to 58,40,000 equity shares by private equity firm Sequoia Capital, through its two funds - SCI Investments IV and SCI Investments V - and promoter Hemant Jalan.

The anchor investors' portion will be open for subscription on January 19.

At the upper end of the price band, the public issue is expected to fetch Rs 11.70 billion, which comprises Rs 3 billion through fresh issuance of shares and Rs 8.70 billion through offer-for-sale.

Half of the issue is reserved for qualified institutional buyers, 35% for retail investors, 15% for non-institutional bidders and there is a reservation of up to 70,000 equity shares for subscription for employees, who will get a discount of Rs 148 a equity share to the offer price.

Indigo Paints will utilize the net proceeds from the fresh issuance of shares for expansion of the existing manufacturing facility at Pudukkottai in Tamil Nadu, for purchasing of tinting machines and gyro shakers and repayment/prepayment of borrowings.

Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities are the book running lead managers to the issue.

Pune-based Indigo Paints, set up in 2000, started out with the manufacture of lower-end cement paints, and gradually expanded its range to cover most segments of water-based paints like exterior emulsions, interior emulsions, distempers and primers.