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Stove Kraft IPO Opens Today: Here Are Ten Things To Know Before You Subscribe

17 August 20233 mins read by Angel One
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The kitchen appliance manufacturer Stove Kraft enters the market with IPO shares in the price band of Rs 384-358, which is expected to fetch Rs 412.62 crores at the upper price range. Stove Kraft IPO is the fourth IPO to open in this month after IRFC, Indigo Paints, and Home First Finance IPOs.  IRFC IPO received a moderate subscription of 3.49 times, whereas Indigo Paints issue was subscribed 117.02 times.

As Stove Kraft issue opens here are the key points to take note before you invest.

  • Stove Kraft is a leading brand that manufactures kitchen appliances under brands Pigeon and Gilma. It also proposes to start producing for the US brand Black + Decker soon, covering the entire range of premium and semi-premium categories
  • Important Stove Kraft Limited IPO dates are January 25, when the subscription window will open and January 28, 2021 when it will close
  • Share allocation for anchor investors happened on January 22, 2021. The company raised over Rs 185 crores from anchor investor placement by allocating 48,22,290 shares for Rs 385 apiece
  • Among 32 anchor investors were Goldman Sachs India, Nippon Life India Trustee, Bajaj Allianz Life Insurance Company, IIFL Special Opportunities Fund, Integrated Core Strategies Asia Pte Ltd, and Sundaram Mutual Fund
  • The issue size comprises fresh shares and offer for sale equities from investor Sequoia Capital India Growth Investment Holdings and promoters Rajendra and Sunita Gandhi
  • The promoters plan to offload 6,90,700 and 59,300 shares respectively, while investors Sequoia Capital India Growth Investment Holdings and SCI Growth Investments II will release 14,92,080 and up to 6,007,920 shares from their stash
  • The issues will launch in the price band of Rs 384-385 apiece to raise an estimated value of Rs 412.62 crores on the upper band
  • In BSE filing the company proposed to utilize the funds from fresh issues for repayment and pre-payment of loans and to finance general corporate purposes
  • The company reported revenue growth of CAGR 13 percent between FY2018-20 and secured a net profit of Rs 28.8 crores during the H1 of FY21. EBITDA margin also improved from 5.9 percent in H1FY20 to 13.7 percent in H1 of FY21
  • During FY 2019-20, its profit rose to Rs 3.2 crores from Rs 0.7 cores in 2019. However, it reported a lower EBITDA margin during this period than its competitors Hawkins and Prestige

Edelweiss Financial Services and JM Financial are appointed the book-running managers for the offer. The shares will list in BSE and NSE on February 5, 2021. Retail individual investors need to apply for a minimum of 38 shares and increase their bid size up to 13 lots or 494 shares.

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