Stovekraft IPO opens on Jan 25, 2021, and closes on Jan 28, 2021, to raise ₹ 412.62 crores with a price band of ₹ 384-385 per equity share.
Stove Kraft is a kitchen solution and an emerging home solution brand and is the largest kitchen appliances company in India. Initially, it started its operations in 1994 by manufacturing kerosene wick stoves and later incorporated in 1999. It manufactures and sells products in India and 14 countries across the world. It exports its products to countries like the USA, Kenya, Mexico, Qatar, Sri Lanka, Fiji, Bahrain, etc.
The Company’s products are sold under three brands, viz. Pigeon, Gilma, and BLACK + DECKER cater to the value, semi-premium, and premium customer segments, respectively. In 2016, it entered into a new segment by launching the Pigeon brand of LED products. It has more than 660+ products in its portfolio including Cookware, Cooktops, Small Kitchen Appliances, LED, LPG Stoves, Kitchen Chimneys etc. Its Gilma brand products sold exclusively through branded outlets owned and operated by franchisees. There were 65 such stores spread across four states and 28 cities and towns, with a presence in south India’s urban market.
As of Sep 30, 2020, the Company has 651 distributors in 27 states and five union territories in India and 12 distributors for its exported products. The Company has two well-established manufacturing facilities, one in Bengaluru (Karnataka) and the other in Baddi (Himachal Pradesh).
Qualitative Factors
- Well recognized, award-winning portfolio of kitchen solutions brands with a diverse range of products across consumer preference.
- Widespread and well-connected distribution network.
- Strong manufacturing capability.
- Consistent focus on quality and innovation.
- A professional management company with a successful track record and extensive experience in the kitchen solutions industry.
- Strong track record and financial stability.
Objects of the Offer
- To make the repayment/pre-payment, in full or part, of certain borrowings availed by the Company.
- To meet general corporate purposes.
Promoters of the Company
Rajendra Gandhi and Sunita Rajendra Gandhi
Key Negatives
Seven outstanding litigations are pending against the promoters: four criminal litigations, two civil litigations, and one action initiated by regulatory and statutory authorities.
Financials of Stovekraft
| Particulars (in ₹ crores) | H1FY21 | FY20 | FY19 | FY18 |
| Total Assets | 498 | 471 | 426 | 394 |
| has grown at a CAGR of | 9.34% | |||
| Total Revenue | 330 | 673 | 643 | 535 |
| has grown at a CAGR of | 12.16% | |||
| PAT | 28.8 | 3.2 | 0.7 | (12) |
| EPS | 9.57 | 1.05 | 0.27 | (4.95) |
Comparison with Listed Peers
| Name of the company | Total Revenue (₹ in cr) | P/E | EPS | RoNW (%) | Book Value |
| Stovekraft | 670 | 366* | 1.05 | 2.51 | 42 |
| TTK Prestige | 2,073 | 56.1 | 107 | 14.12 | 966 |
| Hawkins | 674 | 46.7 | 122 | 51.91 | 245 |
| Butterfly Gandhimathi | 679 | 450 | 1.12 | 1.70 | 112 |
* Stovekraft has a huge P/E if we take EPS of FY20, but on taking EPS of H1FY21, its P/E comes out around 40.
Stovekraft IPO Issue Details
| Issue Open | Jan 25, 2021 – Jan 28, 2021 |
| Issue Type | Book Built Issue IPO |
| Issue Size | [.] equity shares of ₹ 10 (aggregating up to ₹ 412.62 Cr) |
| Fresh Issue | [.] equity shares of ₹ 10 (aggregating up to ₹ 95 Cr) |
| Offer for Sale | 8,250,000 equity shares of ₹ 10 (aggregating up to ₹ 317.62 Cr) |
| Face Value | ₹ 10 per equity share |
| Issue Price | ₹ 384 to ₹ 385 per equity share |
| Market Lot | 10 shares |
| Min Order Quantity | 10 shares |
| Listing At | BSE, NSE |
| Allotment Date | Feb 2, 2021 |
| Listing Date | Feb 5, 2021 |
Stovekraft IPO Bid Details
| Sl No. | Category | Subscription Status (No. of times) | ||
| 25 Jan 21 | 27 Jan 21 | 28 Jan 21 | ||
| 1. | QIB | 0.00x | 0.08x | 8.02x |
| 2. | NII | 0.05x | 1.85x | 32.72x |
| 3. | RII | 5.3x | 13.08x | 26.04x |
| Total | 0.98x | 2.93x | 18.03x | |
Stovekraft IPO Lot Size and Price for RII
| Application | Lots | Shares | Amount (Cut-off) |
| Minimum | 1 | 38 | ₹ 14,630 |
| Maximum | 13 | 494 | ₹ 190,190 |
| Book Running Lead Managers to the Offer |
| 1. Edelweiss Financial Services Limited |
| 2. JM Financial Limited |
| Registrar to the Offer |
| KFin Technologies Private Limited |
| Selenium, Tower B Plot No. 31-32, Financial District Nanakramguda, Srilingampally Hyderabad Rengareddi 500 032 Telangana, India Tel: +91 40 6716 2222 Fax: +91 40 2343 1551 E-mail: stovekraft.ipo@kfintech.com Investor grievance e-mail: einward.ris.ipo@kfintech.com Website: www.kfintech.com Contact Person: M. Murali Krishna SEBI Registration No.: INR000000221 |
| Registered and Corporate Office: 81/1, Medamarana Halli Village, Harohalli Hobli, Kanakapura Taluk, Ramanagar District, 562 112, Karnataka, India Tel: +91 80 2801 6222; Fax: +91 80 2801 6209 |
Source: RHP
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