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Home >Markets >Ipo >Stove Kraft IPO subscribed 18 times on final day

Mumbai: The 413-crore initial public offer of kitchen appliances maker Stove Kraft closed on Thursday with a subscription of 18 times the shares on offer.

Investors bid for 10.59 crore equity shares against the IPO size of 58.94 lakh equity shares according to data available on exchanges.

The portion of the share sale reserved for qualified institutional buyers was subscribed 8.02 times, while the non-institutional investor portion was subscribed 32.72 times, and retail investors 26.4 times.

The price band for the public issue was fixed at 384-385 per share. The initial public offering comprised a fresh issue aggregating 95 crore and an offer for sale of up to 8,250,000 equity shares.

The net proceeds from the issue will be towards Repayment/pre-payment, in full or part, of certain borrowings availed by the company.

"The company has priced its issue at 34.5 times price to equity on a trailing basis, while its peers TTK Prestige and Hawkins Cookers are currently trading at 61.0 times and 47.5 times respectively," said Angel Broking recommended neutral rating to the issue.

"The company's brand value, margins and return on capital are lower than its peers so it won't get such premium valuation like its peers." the brokerage added.

Stove Kraft is one of the dominant players for pressure cookers and amongst the market leader in the sale of free-standing hobs and cooktops.

Edelweiss Financial Services Ltd and JM Financial Ltd advised StoveKraft on the IPO.

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