Stove Kraft share lists at 21% premium to IPO issue price

Shares of Stove Kraft listed at a premium of 21% on BSE on Friday. The share opened at Rs 467 on BSE against issue price of Rs 385. Total 6.11 lakh shares changed hands on BSE in early trade. Market cap of the firm stood at Rs 1,429 crore. Intra day, the share rose 28.71% to Rs 495.55 on BSE.  

Stove Kraft IPO was subscribed 18 times on its last day of subscription.

The firm, which planned to raise Rs 412.62 crore, held its IPO from January 25-28. Portion for 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.

Price band for the IPO was fixed at Rs 384-385 per share. The initial public offer (IPO) comprised of 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.

The company raised a little over Rs 385 crore from anchor investors.

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.

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. 

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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).

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