Home / Companies / News /  Sequoia-backed kitchen appliance maker Stovekraft files for 500 crore IPO

MUMBAI : Silicon Valley-based Sequoia Capital is looking to sell a part of its stake in Stovekraft Pvt. Ltd, worth around 310 crore through the kitchen appliances maker’s proposed initial public offering (IPO). 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 Pigeon brand contributed 81.24% to overall sales for fiscal 2019. On Tuesday, Stovekraft filed its draft documents with the market regulator for its 500 crore IPO. It plans to raise up to 145 crore via a fresh issue of shares, which will be used to repay debt and for other general corporate purposes, said one person aware of its share sale plans.

Stovenkraft’s promoters Rajendra and Sunita Gandhi plan to sell up to 640,906 and 250,000 equity shares, respectively, while Sequoia plans to sell as many as 6.27 million shares from its first and second fund combined.

Investment banks Edelweiss and JM Financial will run the IPO process.

Sequoia had first picked up a significant minority stake in Stovekraft in 2010 for 50 crore. In 2013, it had invested infused more capital into the company. This is the second time the firm has filed for an IPO. It had filed its draft prospectus in September 2018, but eventually shelved its plans.

Stovekraft ranks among non-technology investments made by Sequoia in the early part of the decade, Sequoia typically backs only technology startups in its other markets such as China and the US.

Stovekraft has a manufacturing plant in Bengaluru and one in Baddi, Himachal Pradesh. It is present in Kenya, Uganda, Qatar, Sri Lanka, Fiji, Bahrain, Kuwait, Oman and Tanzania.

The company has also entered the LED lighting market with its Pigeon brand, catering to both domestic and commercial consumers.

Last October, Stovekraft hired Rajiv Mehta, the former managing director of athletic brand Puma and CEO of Arvind Fashion Brands Ltd and Arvind Sports Lifestyle Ltd, to lead the company.

Stovekraft reported a revenue of 642.5 crore for FY19, up from 534.5 crore a year ago, while profit stood at 0.9 crore, from a loss of 11.7 crore in FY18. Stovekraft’s IPO plans also indicate the trend among companies to go public, anticipating a revival in the primary markets.

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