Stove Kraft IPO to open on Jan 25; price band fixed at Rs 384-385 a share

Stove Kraft Ltd, manufacturer of kitchen appliances, on Thursday said it has fixed a price band of Rs 384-385 a share for its initial public offer, which will open for subscription on January 25.

This would be the fourth company to launch an IPO in this year, after Indian Railway Finance Corporation which concluded on Wednesday, while Indigo Paints and Home First Finance Company are currently open for public subscription.

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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.

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 in a virtual press conference.

The three-day initial share-sale will close on January 28. The anchor investors' portion will be open for subscription on January 22.

The company proposes 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.

The company is engaged in the manufacture and retail of a wide and diverse suite of kitchen solutions under Pigeon and Gilma brands.

It is a kitchen solutions and an emerging home solutions brand. The kitchen solutions comprise cookware and cooking appliances across brands, and home solutions comprise various household utilities, including consumer lighting.

The book running lead managers to the offer are Edelweiss Financial Services and JM Financial.The company's shares are proposed to be listed on stock exchanges.

The story has been taken from a news agency