Sequoia eyes partial exit from Stovekraft, Indigo Paints via IPO1 min read . Updated: 24 Dec 2020, 09:09 AM IST
- Indigo Paints IPO is expected to be worth ₹1,000 cr, while Stovekraft is looking at a ₹500 cr public share sale
American venture capital firm Sequoia Capital, better known for its technology investments in India’s leading startups, is looking to sell part of its stakes in two of its non-tech, consumer-facing companies, Indigo Paints Ltd and Stovekraft Ltd, next month, said two people aware of the development, requesting anonymity.
“Both companies are looking to launch their IPOs in January at the earliest. There is a visible traction in the market for consumer-facing companies as seen in the last couple of IPOs. While Stovekraft already has a Sebi approval, Indigo Paints is hoping to get it soon and, hence, its launch timelines will be contingent on getting the approval," said one of the people mentioned above. The Indigo Paints IPO is expected to be worth ₹1,000 crore, while Stovekraft is looking at a ₹500-crore public share sale.
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The IPO plans of these companies follow the recent success of consumer companies Burger King India Ltd and Mrs Bector Food Specialities Ltd, which witnessed massive investor demand, with the offers being subscribed 157 and 199 times, respectively. Burger King India shares more than doubled on their stock market debut, handsomely rewarding the IPO investors.
While Stovekraft is a kitchen and a home solutions brand, Indigo Paints claims to be the fifth largest company in the Indian decorative paints industry in terms of revenue.
Stovekraft sells a wide and diverse suite of kitchen solutions under the Pigeon and Gilma brands, and plans to commence manufacturing of kitchen solutions under the BLACK + DECKER brand.
Sequoia had first picked up a significant minority stake in Stovekraft in 2010 for ₹50 crore. In 2013, it had infused more capital into the company, and currently holds a 25.37% stake.
Indigo Paints manufactures a complete range of decorative paints, including emulsions, enamels, wood coatings, distempers, primers, putties and cement paints.
The company claims to be the first to manufacture and introduce certain differentiated products in the decorative paints market in India, which include metallic emulsions, dirt-proof and water-resistant exterior laminate.
Sequoia has invested nearly ₹140 crore in Indigo Paints since 2015 and holds a 39.34% stake in the company.