NE BUSINESS BUREAU
CHENNAI, JAN 22
The IPO of Stove Kraft Ltd, a manufacturer of kitchen appliances, will open for subscription on January 25 and conclude on January 28. The company has fixed a price band of Rs.384 to Rs. 385 per equity share.
Stove Kraft’s initial share-sale offer comprises a fresh issue of equity shares aggregating up to Rs. 95 crore and an offer for sale of up to 82.50 lakh equity shares.
The offer for sale comprises up to 6,90,700 shares by promoter Rajendra Gandhi; up to 59,300 shares by promoter Sunita Rajendra Gandhi; up to 14,92,080 shares by Sequoia Capital India Growth Investment Holdings and up to 6,007,920 shares by SCI Growth Investments II.
Bids can be made for a minimum of 38 equity shares and in multiples of 38 equity shares thereafter.
The net proceeds from the fresh issue will be utilised towards debt repayment and general corporate purposes.
Edelweiss Financial Services Limited and JM Financial Limited are the Book Running Lead Managers to the Offer.
At the upper end of the price band, the initial public offer (IPO) is expected to fetch Rs. 412.62 crore, Sequoia Capital-backed company said.
Stovekraft Limited is into business of kitchen appliances. Its flagship brands include Pigeon and Gilma. It offers kitchen solutions through our wide range of products including pressure cookers, non-stick cookware, gas and induction cook tops, mixer grinders, chimneys and hobs among others.
The company has manufacturing facilities in Bangalore in Karnataka and at Baddi, Himachal Pradesh.
StoveKraft’s CMD plans increase in local production to push Make-in-India
The kitchen appliances brand Stove Kraft is looking to increase local production facility to ensure all its products are manufactured locally.
While addressing a virtual press conference announcing the IPO, Rajendra Gandhi, Chairman and Managing Director said, Stove Kraft currently manufactures 80 percent of its products while the rest is imported.
Stove Kraft sells kitchen products under the Pigeon and Gilma brands. It also has the licence to sell the US-based Black+Decker brand products in India. It also sells lighting solutions under Pigeon LED.
“There is enough opportunity to grow in our Bengaluru plant. So, we will be adding additional manufacturing lines in this facility in the near future,” he said.
The Bengaluru facility is spread across 46 acres with 30 acres available for future expansion. Stove Kraft has set up manufacturing lines for products like floor maps and vegetable chopper in the Bengaluru facility.
He said almost the entire Black+Decker range is currently imported and the idea is to manufacturer locally to get a competitive advantage.
