Stove Kraft IPO ends with strong subscription
Published on Jan 29, 2021 10:46
The initial public offer (IPO) of Stove Kraft received bids for 10.62 crore shares as against 58.94 lakh shares on offer, according to the stock exchange data. The issue was subscribed 18.03 times.
The non-institutional investors category was subscribed 32.72 times. The retail individual investors category was subscribed 26.04 times. The qualified institutional buyers (QIBs) category was subscribed 8.02 times.
The issue opened for subscription on Monday (25 January 2021) and closed on Thursday (28 January 2021). The price band for the IPO was set at Rs 384-385 per share.
The IPO comprised of fresh issue of equity shares aggregating to Rs 95 crore and an offer of sale of up to 82.50 lakh equity shares by the selling shareholders.
While the company will not receive any proceeds from the offer of sale, out of the net proceeds (fresh issue of Rs 95 crore less issue expenses) from the fresh issue, the company propose to use Rs 76 crore towards repayment and pre-payment, in full or part, of certain borrowings availed by the company and balance towards general corporate purposes.
Ahead of the IPO, the company on 22 January 2021 allotted 48.22 lakh shares to anchor investors at Rs 385 per share, aggregating to Rs 185.68 crore.
Stove Kraft recorded net profit of Rs 28.78 crore and sales of Rs 328.84 crore in the six months ended on 30 September 2020.
Stove Kraft is engaged in the manufacture, trade and retail of a wide and diverse suite of kitchen solutions under "Pigeon" and "Gilma" brands. The company is one of leading player in kitchen appliances in India and are one of the dominant players for pressure cookers and amongst the market leaders in the sale of free-standing hobs and cooktops.
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