Shalimar Paints' stock jumped 8% on Friday after CNBC-TV18 broke the news about the company looking for investors to infuse funds.

Shalimar Paints, India's oldest paints company, which is looking for an investor, has already initiated the process for the same, said sources.

The company has launched a deal and has appointed EY(formally known as Ernst & Young) for the process. The promoters are looking for a strategic or financial investor to infuse funds in the company. The firm is keen on foreign strategic investors, the sources suggested.

Cement companies, private equity firms are said to be interested in the deal, a source confirmed and the company has set a deadline of May 30 for receiving proposals from suitors.

“Shalimar Paints is open to offering up to 20% stake to infuse funds in the company," said a source. However, strategic investors may demand higher stake and even control of the company.

Shalimar Paints spokesperson said, “Shalimar Paints is not on the block. There is also no part stake sale of the company. But yes, looking for strategic investor to come in. Current Management will continue, and it’s not going to change.”

First Published:May 25, 2018 12:45 PM IST