Stove Kraft IPO: Dates, Bid, Lot, An intensive study

Stove Kraft, a kitchen appliances manufacturer, is set to release its initial public offering (IPO) for subscription on January 25. The issue of the IPO will be open for 4 days and will close on January 28.

The company’s book running lead is being managed by Edelweiss Financial Limited and JM Financial and will be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

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Stove Kraft, a kitchen solutions brand, is one of the leading manufacturer of kitchen appliances in India, and is among the major producer and seller of pressure cookers, free standing hobs and cooktops.

It is involved in the retail business of the same products under Pigeon and Gilma brands. It is also in the works to begin production of kitchen solutions under the BLACK + DECKER brand, which will focus more on the premium kitchen appliances segment.

A 79.75% of Pigeon and Gilma branded products are manufactured at the Bengaluru (Karnataka) and Baddi (Himachal Pradesh) production sites. Apart from the aforementioned products, the company also manufactured non-stick cookware (roller coated and spray coated), LPG stoves, mixer grinders, LED bulbs, iron and induction cooktops categories.

The company is associated with 651 distributors within India and 12 distributors exports. Stove Kraft has a network of 45,475 retail outlets.

Rajendra Gandhi, the founder of Stove Krafts is also the Managing Director of the company. Neha Gandhi is the Executive Director and Bharat Singh is the Nominee Director on the board. The CEO of the company is Rajiv Mehta Nitinbhai and Lakshmikant Gupta is the Chairman. Shubha Rao Mayya is the Independent Director on the board.

The stock’s details are mentioned below:

  • After already having raised Rs 185 crore on January 22 from anchor investors, Stove Kraft is now planning to raise approximately Rs 412 crore through the IPO.
  • The size of the public offer is at exactly 6,90,700 equity shares being presented by promoter Rajendra Gandhi and 59,300 shares by promoter Sunita Rajendra Gandhi, 14,92,080 shares by Sequoia Capital India Growth Investment Holdings I, and up to 60,07,920 shares by SCI Growth Investments II.
    The IPO consists of mint issue of Rs 95 crore and a probable sale of 82.50 lakh equity shares by promoters and investors.

Rajendra Gandhi and Sunita Rajendra Gandhi are the prime promoters of company, who held 1,84,43,919 equity shares, representing 61.31 percent of pre-offer paid-up equity of the company.

  • Price band of the share has been fixed at Rs 384-385 per share. The lot size has been put at a minimum of 38 shares.
  • It is known that the main reason for the company to make this public offer is because it needs to pay back debts worth Rs 72 crore. All the proceeds from its IPO will also be utilized for general corporate purposes.
  • Stove Kraft’s profits have made a huge jump from Rs 4.4 crore last year, to Rs 28.8 crore in first half of FY21. During FY20, profits had risen to Rs 3.2 crore from Rs 0.7 crore in previous year.The operational capital increased to Rs 328.9 crore in first half of FY21, from Rs 315.5 crore in same period last year.