Stove Kraft is basically a kitchen solutions company. The company has released its IPO today which will remain open till January 28, 2021 with a price band of Rs 384- Rs 385 per share.
On day one, the company had 26 percent of subscription.
Issue has received bids for worth 15.41 lakh equity shares against the offer size of 58.94 lakh equity shares as per the data records.
Although, the offer size has been reduced by the company after it raised Rs 185 crores from anchor investors before the issue opening.
The IPO comprises of fresh issue of Rs 95 cores along with an offer of sale of 86.50 lakh equity shares by the investor and promoter Sequoia Capital. Fresh issue proceeds will be further utilized for repayment of all the debts.
The issue is also asking for a market cap of Rs 1,253 crore with PE 16x times which is annualized FY21 against the industry average P/E at 42x.
It seems that the offer is at discount to peer valuations because the company has low ROCE of 2.51 percent. It also justifies the discount offer.
The company is engaged in the manufacture and retail of a wide suite of kitchen solutions.
These comes under the name of brands like Pigeon and Gilma. The company is also proposed to start its manufacturing business with BLACK+ DECKER as well.
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