Stove Kraft IPO off to strong start, retail segment over-subscribed: 10 points2 min read . Updated: 25 Jan 2021, 01:26 PM IST
- Stove Kraft IPO: The price band has been set at ₹384-385 per share
- The IPO will close on January 28
The IPO of kitchen appliances manufacturer Stove Kraft Ltd was off to a strong start with retail portion subscribed in first few hours. As of 12:30 pm, the issue was 0.44 times subscribed with the retail segment subscribed about 2.5 times.
10 things to know about Stove Kraft IPO:
1) The price band of Stove Kraft IPO has been set at ₹384-385 per share and the issue will conclude January 28.
2) The share allocation in Stove Kraft IPO is likely to finalised on February 2 and listing may happen on February 5, according to brokerages.
3) Stove Kraft Limited is into business of kitchen appliances. Its flagship brands include Pigeon and Gilma.
4) Ahead of the IPO, Stove Kraft had raised a little over ₹185 crore from anchor investors. The anchor investors included are 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.
5) Stove Kraft's initial share-sale offer comprises a fresh issue of equity shares aggregating up to ₹95 crore and an offer for sale of up to 82.50 lakh equity shares.
6) The offer for sale comprises up to 6,90,700 shares by promoter Rajendra Gandhi; up to 59,300 shares by promoter Sunita Rajendra Gandhi; up to 14,92,080 shares by Sequoia Capital India Growth Investment Holdings and up to 6,007,920 shares by SCI Growth Investments II.
7) At the upper end of the price band, the initial public offer (IPO) is expected to fetch ₹412.62 crore.
9) This would be the fourth company to launch an IPO in January, after Indian Railway Finance Corporation and Indigo Paints which concluded last week, while that of Home First Finance Company is currently open for public subscription.
9) Sequoia Capital-backed Stove Kraft proposes to utilise 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.
10) "Stove Kraft reported revenue CAGR of 13% over FY18-20. The company had a low operating margin profile over FY18-FY20 with EBITDA margin in range of 2-5%. In H1FY21, the company reported improved performance with EBITDA margin of 13.7% and net profit of ₹28 crore on account of significant reduction in operating expenses. Sustainability of improved profitability performance remains a critical factor. At ₹385, the stock is available at 1.9 times FY20 Market cap/sales," ICICI Securities said in a note. (With Agency Inputs)