SHARES in Edinburgh-based IndigoVision surged 11.5% yesterday as the City reacted to an after-hours statement last Friday from Scottish Equity Partners that it was considering a fresh attempt to buy the technology company.

Glasgow-headquartered private equity house SEP has been working with former IndigoVision chief executive Oliver Vellacott on a potential bid for the video-over-internet company. Its revelation that it was mulling another pitch to buy the company came shortly after the end of the London stock market's abbreviated, half-day session ahead of Christmas. The market reopened yesterday morning, following the Christmas holidays.

The 35p jump in IndigoVision's shares to 340p yesterday raised the company's stock market worth from £23 million to £25.6m.

IndigoVision issued a statement yesterday morning, before the stock market reopened, in which it revealed it would make a further trading statement in January.

This is likely to be ahead of the January 20 deadline for SEP to clarify whether it will proceed with a bid for IndigoVision, which has developed technology used in internet-based CCTV surveillance systems in airports.

IndigoVision, which advised shareholders to take no action meantime, told the stock market: "During November 2011, IndigoVision received from Oliver Vellacott and Scottish Equity Partners LLP three indicative proposals which were subject to a number of pre-conditions and which were not close to a level that merited serious consideration. These were unequivocally rejected."

IndigoVision chairman Hamish Grossart told The Herald on December 16 that the proposals to take the company private had been pitched at 225p, 248p and 265p-a-share. SEP said on Friday that the third proposal, at 265p-a-share, was considered and rejected on November 25 by IndigoVision's board, which later the same day issued a trading statement. Shares in IndigoVision, boosted by the trading update, gained 34% to 265p on November 25.

IndigoVision said yesterday: "On 25 November 2011, IndigoVision issued a trading update to the market which... stated... the operating performance in the financial year to that date was significantly higher than the corresponding period in the previous year, and materially ahead of the same period in any earlier year.

"The purpose of the announcement was to inform the market, in accordance with the AIM (Alternative Investment Market) Rules, that the then-published market forecasts seriously understated the potential operating performance for the financial year ending 31 July 2012. The board intends to issue a further trading update... in January."

Shareholder Kevin James Sullivan yesterday declared a 1.63% stake in IndigoVision. He was unavailable for comment.

Mr Vellacott, who owns 22.9% of IndigoVision and founded the company, said on Friday he had agreed to SEP's request that he withdraw his attempt to remove Mr Grossart from the board. It is understood the Takeover Panel will have made plain its belief that Mr Vellacott's bid to remove directors should not run in parallel with the weighing of an offer for IndigoVision by his backer SEP.

SEP confirmed on Friday it had been behind several management buy-out proposals involving Mr Vellacott. And it told the stock market: "SEP is considering its position in order to decide whether or not to make a further proposal to the company."

The Herald last Thursday highlighted the likelihood of a bid from SEP and Mr Vellacott for IndigoVision, following the revelation the previous day that SEP had purchased a 6.63% stake for more than £1.25m on December 16. IndigoVision shares have surged from their close of 262.5p on Tuesday last week.

IndigoVision announced Mr Vellacott's exit on December 9. His assertion he was dismissed was disputed by Mr Grossart.

The company said on December 13 that Mr Vellacott had requisitioned a general meeting to vote on resolutions to remove Mr Grossart and non-executive director Andrew Fulton from the board. Mr Vellacott had been seeking election to the board with allies Sir Peter Burt, former chief executive of Bank of Scotland, and Waverley Cameron, of the Edinburgh stationery dynasty. IndigoVision confirmed yesterday that this requisition had now been withdrawn, claiming "no reason was given".