India: Sequoia-backed kitchen appliances maker Stovekraft looks to go public

Photo: Stovekraft website

Sequoia Capital-backed kitchen appliances maker Stovekraft Pvt. Ltd has hired investment banks for a planned public listing, two people aware of the development said.

Stovekraft makes and sells a wide range of kitchen products including pressure cookers, non-stick cookware, gas and induction cooktops, mixer-grinders and chimneys under the Pigeon and Gilma brands.

“The company has appointed investment banks Edelweiss and JM Financial to manage its initial public offering (IPO) and work on the draft prospectus is expected to start in the coming weeks,” said one of the two people cited above, requesting anonymity because he is not authorized to speak to the media.

The IPO will allow Sequoia to partially exit its stake in the kitchen appliances maker, the first person added. Sequoia owns around 40% of the company.

“The public offering will be a mix of primary share sale and secondary share sale. Sequoia is… expected to offer a significant quantum of its shares in the IPO, while some fresh capital could be raised for investing in the business. The IPO process has just been started and the quantum of primary and secondary share sales are yet to finalized by the shareholders,” he said.

The company is looking at a valuation of around $250-300 million, the first person said.

Sequoia Capital declined to comment on the development.

Emails sent to Rajendra Gandhi, chairman and managing director, and Neha Gandhi, director at Stovekraft, did not elicit any response.

Emails to sent Edelweiss and JM Financial too went unanswered.

According to Stovekraft’s website, the company earned revenue of Rs650 crore in the financial year 2015-16 and sells over 600 products.

The company has over the years also managed to establish a presence in Kenya, Uganda, Qatar, Sri Lanka, Fiji, Bahrain, Kuwait, Oman and Tanzania.

Stovekraft has two manufacturing plants in India, one at Bangalore and the other at Baddi, Himachal Pradesh.

The company has expanded into the LED lighting market with its Pigeon brand, selling LED products for both domestic and commercial applications.

Sequoia bought a stake in Stovekraft in 2010, investing Rs50 crore for a significant minority holding.

In 2013, it invested Rs120 crore more to raise its stake to around 40%.

This will be the second consumer brand from Sequoia’s India portfolio to go public in recent times.

Earlier this year snack maker Prataap Snacks Ltd, where it owned a majority stake, went public.

Prataap’s Rs482-crore IPO was subscribed 47.29 times when it launched in September.

Sequoia sold shares worth Rs167 crore in the IPO.

Earlier in 2016, another Sequoia-backed company, antivirus maker Quick Heal Technologies, went public.

So far this year, 33 companies have raised Rs65,923 crore through IPOs, a record for the Indian primary market, according to data from primary market tracker Prime Database.

In 2016, 26 companies had raised Rs26,493.8 crore from the IPO market.

This article was first published on LiveMint.com.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.