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Stove Kraft debuts on exchanges tomorrow, check grey market premium

The initial public offer (IPO), comprised of a fresh issue of up to Rs 95 crore and an offer for sale of up to 82.50 lakh equity shares.

twitter-logoBusinessToday.In | February 4, 2021 | Updated 21:45 IST
Stove Kraft debuts on exchanges tomorrow, check grey market premium
The price band for the IPO was fixed at Rs 384-385 per share, while lot size was 38 shares.

The shares of kitchen appliance maker Stove Kraft will make their debut on the stock exchanges, NSE and BSE, on Friday.

The company's Rs 412.62 crore initial public offer (IPO), which was open for subscription from January 25-28, was subscribed 18 times. The qualified institutional buyers (QIBs) category was subscribed 8 times, while that for non-institutional investors was subscribed 32.72 times. Retail individual investors category was subscribed 26 times.

The price band for the offer was fixed at Rs 384-385 per share. The initial public offer (IPO) comprised of a fresh issue of up to Rs 95 crore and an offer for sale of up to 82.50 lakh equity shares. The lot size for the IPO was 38 shares.

Earlier, the company had raised a little over Rs 385 crore from investors.

Also read: Stove Kraft IPO subscribed 18 times on Thursday

As per media reports, the company's unlisted shares are commanding a premium of Rs 35-40 in the grey market, which translates to a premium of about 10 per cent over the IPO price. Hence, the shares may see listing at about Rs 420-425 per share.  

Before the IPO, the company's shares were seen trading at an upside of 26 per cent or at Rs 486, commanding a grey market premium of Rs 101 today over the IPO price.

As per the company's draft red herring prospectus (DRHP), it plans to utilise the net proceeds from the fresh issue towards repayment or pre-payment of certain borrowings availed by the firm and for other general corporate purposes.  

Stove Kraft has a strong distribution network under the 'Pigeon' brand. It has 651 distributors in 27 states and 5 union territories, and 12 distributors for exports. Under the 'Gilima' brand, it has 65 stores across 4 states and 28 cities. Its manufacturing facilities are located at Bengaluru (Karnataka) and Baddi (Himachal Pradesh).

Edelweiss Financial Services and JM Financial were the book running lead managers to the IPO. KFin Technologies Private Ltd was the registrar to the issue.

Also read: Stove Kraft IPO opens today: Should you subscribe to the issue?

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