Kitchen appliances brand pigeon manufacturer Stovekraft Ltd has received the green signal from market regulator, Securities, and Exchange Board of India (SEBI), to float its initial public offering.
Stovekraft, backed by venture capital firm Sequoia Capital, had refiled in February this year.
Stovekraft plans to raise Rs 145 crore ($20.35 million) by selling fresh shares while its promoters and Sequoia will sell 7.16 million shares in the IPO, according to the draft red herring prospectus (DRHP).
The offer for sale comprises up to 6,40,906 shares by promoter Rajendra Gandhi; up to 2,50,000 shares by promoter Sunita Rajendra Gandhi; approximately 13,11,205 shares by Sequoia Capital India Growth Investment Holdings and up to 49,61,610 shares by SCI Growth Investments II, the document said.
The approval from SEBI is necessary for any company to launch public issues such as initial public offer, follow-on public offer, and rights issue. This successful IPO and listing help Stove Kraft join listed peers in the industry such as TTK Prestige, Butterfly Gandhimati, and Hawkins.
The company proposes to utilize the net proceeds from the fresh issue towards repayment or pre-payment of certain borrowings availed by the firm and for other general corporate purposes, according to a report in Business Standard.
The book running lead managers to the offer are Edelweiss Financial Services and JM Financial.
Stove Kraft, which was incorporated in 1999, manufactures and retails a wide and diverse collection of kitchen solutions under Pigeon and Gilma brands. It also plans to start making kitchen products under the Black + Decker brand, for which it has an already existing licensing agreement.