Stove Kraft IPO to open today: All you need to know

The Rs 412.62-crore initial public offering (IPO) of Stove Kraft is set to open for subscription on January 25. The kitchen appliance company has fixed the price band of the IPO at Rs 384-385 per share, which will close on January 28.

This will be the fourth public issue of the calendar year 2021, after Indian Railway Finance Corp, Indigo Paints and Home First Finance Company India IPOs.

> The public issue comprises a fresh issue of Rs 95 crore by the company and a Rs 317.6 crore offer for sale by promoters and investors.

> The OFS consists of 82.50 lakh shares by promoters and investors.

> OFS share distribution: 6.9 lakh equity shares by promoter Rajendra Gandhi, 59,300 equity shares by promoter Sunita Rajendra Gandhi, 14.92 lakh shares by Sequoia Capital India Growth Investment Holdings I, and 60.07 lakh shares by SCI Growth Investments II.

> The company has set a price band of Rs 384-385 per share and at the higher end of the price band, the issue is expected to fetch Rs 412.62 crore.

> Investors can bid for a minimum of 38 equity shares and in multiples of 38 shares thereafter.

> The company said that it will utilise its net proceeds from the fresh issue for repayment or pre-payment of certain borrowings and general corporate purposes.

> Edelweiss Financial Services Limited and JM Financial Limited are the Book Running Lead Managers to the Offer.

> The anchor investors portion will open for subscription today. Stove Kraft shares were commanding a grey market premium of Rs 101.

> The Sequoia Capital-backed company manufactures kitchen appliances under its flagship brands include Pigeon and Gilma. It also offers kitchen solutions through a wide range of products including pressure cookers, non-stick cookware, gas and induction cooktops, mixer grinders, chimneys and hobs among others. The company has manufacturing facilities in Bangalore and at Baddi, Himachal Pradesh

> In the first half of FY21, the firm saw 76.9 percent sales come from Pigeon. Its revenue from operations stood at Rs 328.8 crore during the period, up 4.2 percent YoY. Meanwhile, the net profit jumped to Rs 28.8 crore in H1FY22 from Rs 4.4 crore a year ago.