Updated: January 26, 2021 10:49:31 am
The Rs 412.62 crore initial public offering (IPO) of kitchen utensils, appliances and accessories maker StoveKraft opened on Monday and it will be available for subscription till Thursday, January 28, 2021. The price band of the IPO has been fixed at Rs 384-385 per share.
The company sells various kitchen utensils and appliances under the brand name “Pigeon”.
Investors who wish to subscribe to StoveKraft’s IPO can bid in the lot of 38 equity shares and multiples thereof. At the upper price band, they will have to shell out Rs 14,630 to get a single lot of Stove Kraft. The shares will be listed on both BSE and the National Stock Exchange (NSE).
Interested investors must also note that the cut-off time for UPI mandate confirmation is Friday, January 29, 2021, upto 12:00 pm failing which their application might not get considered.
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.
Ahead of its IPO, the company on Friday raised a little over Rs 185 crore from its anchor investors. A total of 48,22,290 shares have been allotted to 32 anchor investors at Rs 385 a piece, which is the upper end of the price band of StoveKraft IPO. At this price, the company raised Rs 185.68 crore, news agency PTI reported on Saturday.
Edelweiss Financial Services and JM Financial are the lead managers to the StoveKraft IPO while KFIN Technologies is the registrar of the issue.
Most brokerages have kept the issue unrated or neutral.
“The IPO is valued at 301x FY20 and 22x FY21E annualized earnings, which look to be at par compared to Butterfly Gandhimati and 50 per cent discount to TTK Prestige. Notably, these peers enjoy stronger balance sheet and proven earnings record compared to SKL. Hence, IPO is valued aggressively. Despite being into operation for more than two decades and setting up strong distribution network, SKL has not delivered up to the marks. While sharp improvement in earnings in 1HFY21 bodes well, we are not certain about the sustainability of the same,” Reliance Securities said in its IPO note on Stove Kraft.
ICICI Securities in its IPO note said, “Inability to maintain and promote the brand portfolio can impact future revenue growth.” It added that around 20 per cent of StoveKart’s revenues are generated from traded products.
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