TTK Prestige Ltd is raising Rs 106.5 crore ($19 million) from Cartica Capital through a preferential allotment, as per a stock market disclosure.
The deal involves allotment of 3,00,000 equity shares at a premium of Rs 3,540 per share. This will represent around 2.6 per cent in the diluted capital of the public-listed firm, as per VCCircle estimates.
The firm did not give a reason for the funding move. It had debt worth Rs 110 crore as of December 31, 2012.
A part of the TTK Group which has interests in contraceptives, baby care and other products, TTK Prestige is one of the top small kitchen appliances firms in the country. It ended FY13 with revenues of Rs 1,358 crore and net profit of Rs 133 crore. Its revenues have grown over threefold in the past four years and net profit has grown over five times in the same period.
The firm operates under its Prestige brand and is particularly strong in the southern region of the country. It had been trying to derisk its business through exports and increased penetration in other regions of India in the wake of sluggish conditions in its stronghold.
Mauritius-domiciled Cartica Capital is also an investor in another public-listed firm Mahindra & Mahindra Financial Services.
This is the first private funding deal in over a year in the kitchen appliances industry. Last year, Reliance Capital’s PE arm invested a similar amount in Butterfly Gandhimati Appliances. In the past, the sector saw investments by Sequoia Capital in Stovekraft. In a big deal in this space, private equity investors are in talks to buy a majority stake in Sunflame, one of the top players in the country.
(Edited by Sanghamitra Mandal)