Stove Kraft IPO: Everything from Price Band to Lot Size In January 2021
As the economy of the country started recovering from the COVID-19 pandemic -- the businesses – be it a small or large tried to recover from the jolt which they faced probably for the first in their tenure after the recession in 2008. At the same time, many companies launched Initial Public Offering (IPO).
After HFFC, Indigo Paints and IRFC, Stove Kraft Limited too launched IPO on January 25, 2021. For those who heard the Stove Kraft for the first time, let us tell you that the company is one of the largest kitchen suppliers in India and it also sells and manufacture kitchen solutions under the brand name of "Pigeon" and "Gilima".
As mentioned above, the company launched IPO on January 25, 2021 which was the fourth IPO in the year till that time. So, in this article, we will look details of the company's IPO price band and lot size including amount earned from anchor investors.
Company Planned to raise 412.63 crore through IPO
The company planned to raise Rs 412.63 crore through IPO. Notably, there was a craze among investors regarding the IPO market. After earning a lot from the primary market in the year 2020, IPO is getting good response this year as well.
According to experts, the valuation of stove craft was higher than that of peer companies. According to brokerage house Angel Broking, the brand value, margin and returns of the company were weak as compared to some peer companies at that time. There was further uncertainty regarding profits, so the issue had a neutral rating. Although the brokerage also said that the company's margins had improved in the first half of FY 2021 due to cast cutting and some other measures, but there were concerns about how sustainable it is.
Price band
The price band for the IPO of Stove Craft was fixed at Rs 384-385 per share. In this, 95 crore fresh shares was about to issue. Along with this, the company and promoters were supposed to issue 82.5 lakh shares through Offer for Sale (OFS). This IPO was open from January 25 to January 28. At the upper level of the price range, the IPO was expected to raise Rs 412.62 crore.
Lot size
The lot size in this IPO was 38 shares. That is, one had to invest for at least 38 shares. In terms of upper price band, investors had to invest at least Rs 14630. After that one could have applied in multiples of it.
How much promoters were expected to sell?
Under the sale offer, promoter Rajendra Gandhi will offer 6,90,700 shares, promoter Sunita Rajendra Gandhi 59,300, Sequoia Capital India Growth Investments Holding 14,92,080 and SCI Growth Investments two 60,07,920 shares.
The company's IPO was subscribed 18 times which ran from January 25 to January 28. Non-institutional investors were bidding 32.72 times. The company had risen over Rs 185 crore from anchor investors.
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