In this article, FinTuts will share its views or insights about the Stove Kraft IPO, so that you can take a self-decision on your investment or wealth creation journey and can be financially literate and atmanirbhar.
Incorporated in 1999, Bengaluru-based, the owner of Pigeon and Gilma flagship brands, one of the dominant player, Stove Kraft is a kitchen solutions and an emerging home solutions company.
The kitchen solutions include cookware and cooking appliances of various ranges & brands, and home solutions include various household utilities, including consumer lighting. The company has further diversified the Pigeon brand by launching LED products under it in 2016.
The company does not have a holding company or any subsidiary. It has taken a co-branding initiative with LPG companies such as Indian Oil Corporation Ltd and Hindustan Petroleum Corporation Ltd.
The company is backed by Sequoia Capital India Investment Holdings I, SCI Growth Investments II. The registrar for the IPO is KFintech Private Limited.
Edelweiss Financial Services Ltd. and JM Financial Ltd. are the books running lead managers to the issue.
Objectives of Home First Finance Company IPO:
- To utilize the net proceeds from the fresh issue for repayment or prepayment, fully or partly, of certain borrowings availed by the company
- For other general corporate expenses or purposes
Statistics of Stove Kraft IPO
Let’s look at the strengths of Stove Kraft:-
- A one-stop-shop for kitchen solutions
- A diverse range of products across consumer preference
- Widespread and well-connected distribution network
- Strong manufacturing capabilities
- Consistent focus on quality and innovation
- Professional management with a successful track record
- Strong track record and financial stability
Let’s look at the weaknesses of Stove Kraft:-
- Pigeon brand name seems to be under litigation
- May face increasing competition from local brands
- Past negative cash flows
- Dependency on third-party for the source of raw material
Highlights of Stove Kraft IPO
- Issue Size: Around ₹412.63 Cr
- Face Value: ₹10 per equity share
- IPO Price: ₹384 to ₹385 per equity share
- Market Lot: 38 Shares(1 Lot)
- Min/Max Order Quantity: 38 Shares(1 Lot) – 494 Shares(13 Lot)
- Min/Max Amount: ₹14,630 – ₹1,90,190 (Cut-off)
- Listing At: BSE, NSE
- Retail/HNI/QIB Allocation: 10%/TBD/TBD
- Promotor Holdings: 61.31% (Pre-Issue)
- Promotor Holdings: TBD (Post-Issue)
- Issue Size: 107.17 lac shares (Around ₹412 cr)
- Fresh Issue: 24.67 lac shares (Around ₹95 cr)
- Offer for Sale: 82.50 lac shares (Around ₹317 cr)
- IPO Opening Date: Jan 25, 2021
- IPO Closing Date: Jan 28, 2021
- Basis of Allotment Date: Feb 02, 2021
- Initiation of Refunds: Feb 03, 2021
- Credit to Demat Account: Feb 04, 2021
- IPO Listing Date: Feb 05, 2021
GMP of Stove Kraft IPO
Grey Market Premium(GMP) is the price at which a listed company’s equity shares are traded in the grey market. Grey Markets are basically unauthorized or unregulated equity share distribution channels other than the regulated stock market.
Investors might mistake grey markets as illegal. But it help investors predict the performance of an IPO legitimately and sometimes it boost the listing price.
Tentatively, the Grey Market Premium of Stove Kraft IPO is around Rs.100-110. The Subject to Sauda and Kostak price of Stove Kraft IPO seems to be around Rs. 3000 and Rs 300 respectively.
The Bottom Line | Verdict
Looking at the financial performance of Stove Kraft over the last 3 years, the revenue of the company has increased by 25% and the total assets of the company have increased almost 20% from 2018, which can be considered as good growth.
Considering the losses and negative EPS from 2014-2018, investors may take a position in the IPO and if allotted should book gains at the time of listing and may later add the stock at dips in lots for long-term investment.
Also Read about other IPOs: IPO Reviews/Analysis
We hope that this article might have surely helped you to understand in general about the Stove Kraft IPO.
If you liked reading about this article, please do visit our other articles regarding Mutual Fund or Passive Income related reviews.
Besides, should you have any concerns, please feel free to comment below or do reach out to us. FinTuts will be happy to help. #HappyInvesting.
Sumit Kalaria is the person behind FinTuts.in. He is actively engaged in finance blogging, not associated with any financial product or service provider. The main focus of his blog is to make investment simple by helping investors to make informed financial decisions.