- Posted by: Orants
- Category: Financial Advisor
Stove Kraft IPO – The subscription period for the Rs 412.62 crore Stove Kraft initial public offering (IPO) will begin on Monday, January 25, with prices ranging from Rs 384 to Rs 385 per share.
This would be the fourth public offering of the calendar year 2021, after the recently ended IPOs for Indigo Paints and Home First Finance Company India and the continuing IPOs for Indian Railway Finance Corp.
In addition to an offer-for-sale (OFS) of up to 82.50 lakh equity shares, the Stove Kraft IPO includes a new issuance of shares valued at Rs 95 crore.
On today, January 22, 2021, subscriptions for the anchor investors part will be available. Shares of Stove Kraft were trading today with a 101 rupee premium on the black market.
The shares were seen trading at Rs 486, which indicates a gain of 26% over the IPO price.
The brand name “Pigeon,” which accounts for 80% of sales and is in dispute, looks to be a problem, according to Abhay Doshi, founder of UnlistedArena.com, which deals in Pre-IPO & Unlisted Shares.
Stove Kraft, a producer of kitchen equipment, just achieved profitability after two years of operating in a very competitive sector.
In the first half of FY21, Stove Kraft reported remarkable numbers. “Given the enthusiasm in the primary market and the modest issue size for retail players, this may perform well on the listing,” said the analyst.
Even if Stove Kraft reported positive results for the first six months of FY21, it would be wiser to wait until after that performance to make long-term choices, Doshi said.
In the OFS, promoter Rajendra Gandhi has 6.90 lakh equity shares, his wife Sunita Rajendra Gandhi owns 59,300 equity shares, Sequoia Capital India Growth Investment Holdings I owns 14.92 lakh shares, and SCI Growth Investments II owns 60.07 lakh shares.
Investors may place a bid for a minimum of 38 equity shares and additional shares in multiples of 38 for a minimum of Rs 14,630.
Edelweiss Financial Services and JM Financial are the book-running lead managers for the offer.
While KFin Technologies Private Ltd will serve as the issue’s registrar.
Stove Kraft plans to use the net proceeds from the new issuance to pay back or advance some of the firm’s borrowings as well as for other general business reasons.
The trailing PE multiple for the Stove Kraft IPO is 34.5x.
The firm is a kitchen solutions and a developing home solutions brand, according to Keshav Lahoti, Associate Equity Analyst at Angel Broking Ltd.
Under our Pigeon and Gilma brands, the firm produces and sells a broad variety of kitchen solutions.
We now plan to start producing kitchen solutions under the BLACK + DECKER brand, which will cover the whole spectrum of value, semi-premium, and premium kitchen solutions, respectively.
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