Stove Kraft Ltd. will launch its Rs 412-crore initial public offering on Jan. 25 as the kitchen appliance maker aims to raise funds to pare debt and shareholders part-sell stake when equity markets are at a record high.
The maiden offer comprises a fresh equity issue worth Rs 95 crore and a Rs 317.6-crore offer-for-sale by institutional investors Sequoia Capital India Investment Holdings I, SCI Growth Investments II and promoters Rajendra Gandhi and Sunita Gandhi. The price band for selling shares has been fixed at Rs 384-385 apiece, according to its red herring prospectus.
Issue opens: Jan. 25
Issue closes: Jan. 28
Face value: Rs 10 apiece
Minimum bid: 38 shares
The Bengaluru-based firm will use the entire proceeds from the fresh issue to pare debt. Edelweiss Financial Services Ltd. and JM Financial Ltd. are the book running lead managers to the issue.
The IPO comes at a time when equity markets are at all-time highs and investors have shown appetite for new companies. In 2020, 13 large companies were listed with IPOs of at least three getting subscribed more than 150 times. The public offers launched in 2021 so far have also seen robust demand.
Anchor Allocation
Stove Kraft raised Rs 185.68 crore through anchor allotment by issuing 48,22,890 equity shares at the upper end of the price band of Rs 385 apiece. 32 entities, including three domestic mutual funds, bought shares.
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