Stove Kraft Ltd, manufacturer of kitchen appliances and utensils on Monday opened Rs 412.62 crore initial public offering (IPO). The company is known for its brand “Pigeon”. This is the fourth company to launch an IPO in the month of January 2021, after Indian Railway Finance Corporation, Indigo Paints and Home First Finance Company. The shares of the company will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The IPO has already been subscribed 49 per cent on the first day of bidding. According to the data available on the exchanges, the issue received bids for 28.54 lakh equity shares against offer size of 58.94 lakh shares.
Here are the details you need to know:
The objective of the issue: The main purpose of the IPO is to use the proceeds to make the repayment or prepayment of the company's borrowings either fully or partially and to meet general corporate purposes.
Price Band: The price band of the Stove Kraft Ltd IPO has been fixed at Rs 384-385 per share.
Timeline: It will be a three-day share sale beginning from January 25 and will close on January 28. Since January 26 is the Republic Day the market indices will remain closed for the day. Subscription for the anchor investor's portion will open on January 22. The issue is likely to list on February 5, 2021.
Lot size: Investors who want to subscribe to Stove Kraft IPO can bid in the lot of 38 equity shares. The lot size for a retail-individual investor is up to 13 lots (494 shares). However, the cut-off time for UPI mandate confirmation is January 29, 2021, up to 12:00 pm after which the application might not be considered.
Offer for sale: Rajendra Gandhi, one of the promoters of the company has provided the offer for sale comprising up to 6,90,700 shares. Whereas, Sunita Rajendra Gandhi has given up to 59,300 shares followed by Sequoia Capital India Growth Investment Holdings and SCI Growth Investments II for up to 14,92,080 shares and 6,007,920 shares respectively.
Lead managers: The lead managers to the StoveKraft IPO are Edelweiss Financial Services and JM Financial. On the other hand, the registrar of the issue is KFIN Technologies.
Anchor investors: The anchor investors of the company include Goldman Sachs India, Nippon Life India Trustee, Bajaj Allianz Life Insurance Company among others. The 32 anchor investors will get a total of 48,22,290 shares at Rs 385 a piece.
How to apply: Investors can apply online using either UPI (offered by brokers who don't offer banking services) or ASBA (available in the net banking of one's bank account) as payment method.