Stovekraft IPO: Key Details
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Company Information
Stovekraft Limited, incorporated in 1999, is one of the leading brands for kitchen appliances in India and is one of the dominant players for pressure cookers and amongst the market leaders in the sale of free-standing hobs and cooktops (Source: F&S Report). They are engaged in the manufacture and retail of a wide and diverse suite of kitchen solutions under their Pigeon and Gilma brands and propose to commence manufacturing of kitchen solutions under the
BLACK + DECKER brand, covering the entire range of value, semi-premium and premium kitchen solutions, respectively.
Company’s kitchen solutions comprise of cookware and cooking appliances, and home solutions comprise various household utilities, including consumer lighting, which not only enables us to be a one-stop-shop for kitchen and home solutions but also offer products at different pricing points to meet diverse customer requirements and aspirations.
Their flagship brands, Pigeon and Gilma, have enjoyed a market presence of over 14 years and enjoy a high brand recall amongst customers for quality and value for money. Pigeon has been listed as one of the “India’s Most Admired Brands 2016” by White Page International.
Competitive Strengths
- A well-recognized, award-winning portfolio of kitchen solutions brands with a diverse range of products across consumer preferences
- Widespread, well-connected distribution network with a presence across multiple retail channels and a dedicated after-sales network.
- Strong manufacturing capability with efficient backward integration
- Consistent focus on quality and innovation
- Professional management with a successful track record and extensive experience in the kitchen solutions industry, and a young and dynamic workforce.
- Strong track record and financial stability.
Company Strategy
- Increase geographical reach and expansion of addressable market
- Scale up branding, promotional and digital activities
- Expand portfolio in the existing product categories
- Invest in new plants and increase automation in existing manufacturing facilities
- Focus on and augment the LED consumer lighting business
- Tie up with a renowned consultancy firm for improving overall operational efficiency
Proceeds from Stovekraft IPO will be used to:
- Repayment/pre-payment, in full or part, of certain borrowings availed by the company; and
- General corporate purposes.
Further, the company expects that the listing of the Equity Shares will enhance its visibility and brand image among existing and potential customers.
Stovekraft IPO: Financials
| 2018 | 2019 | 2020 (Mar) | 2020 (Sep) | |
|---|---|---|---|---|
| Revenue from Ops | 528.95 Cr | 640.94 Cr | 669.86 Cr | 328.84 Cr |
| Profit before Tax | (12.56) Cr | 1.22 Cr | 3.53 Cr | 28.78 Cr |
| EPS (Basic) | (6.35) | 0.33 | 1.28 | 11.64 |
| Price to Earnings (2020) | Basic EPS | P/E |
|---|---|---|
| Stovekraft (03/2020) | 1.28 | 300.78* |
| Stovekraft (09/2020) | 11.64 | 33.07* |
| Prestige | 133.13 | 60.98 |
| Hawkins | 137.09 | 41.94 |
| Butterfly | 1.83 | 287.43 |
| Sector P/E | – | 58.75 |
Stovekraft IPO Dashboard
Issue Details
| Type | Value |
|---|---|
| Issue Size | ₹412.63 Cr |
| Fresh Issue | ₹95.00 Cr |
| offer for Sale | ₹ 307.63 Cr |
| Face Value | ₹10/- per Equity Share |
| IPO Price | ₹384 – ₹385 |
| Lot Size | 38 shares |
| Lots | Min 1 – Max 13 |
Key Dates
| Date Type | Date |
|---|---|
| Bid Open | 25/01/2021 |
| Bid Close | 28/01/2021 |
| Allotment Finalization | 02/02/2021 |
| Initiation of Refunds | 03/02/2021 |
| Credit of Shares | 04/02/2021 |
| Listing Date | 05/02/2021 |
Lot Size and Price
| Lots | Shares | Amount |
|---|---|---|
| 1 | 38 | ₹14,630 |
| 13 | 494 | ₹1,90,190 |
Promoter Holding
| Holding | Percentage |
|---|---|
| Pre-Issue | 61.31 % |
| Post – issue | {x} % |
Stovekraft IPO: Investor Quota and Shares Offered
| Investor Type | Quota | Shares on Offer |
|---|---|---|
| QIB | 75% | {x} shares |
| NII | 15% | {x} shares |
| RII (Retail) | 10% | {x} shares |
| Employee | – | {x} shares |
| Total | 100% | {x} shares |
Stovekraft IPO: Risks
- The trademark for the company’s marquee brand ‘Pigeon’ is the subject matter of litigation, and there can be no assurance that the company will be able to protect the trademark in the future.
- The company sources its raw materials from third parties with whom they do not have long term contract or price guarantees.
- The company relies heavily on its brand portfolio, and any inability to successfully maintain and promote the brand portfolio may adversely affect the business
- Company’s operations are significantly dependent on third parties for the distribution and sales of products
- There are various proceedings involving the company, its Promoters and its Director which if determined against them, may have an adverse effect on the business
- Company’s Promoter, Rajendra Gandhi, has been named as a respondent in certain criminal and civil proceedings.
For complete internal and external risk factors, you can refer the DRHP of the company.
Stovekraft IPO: Registrar and Lead Managers
Registrar of the Issue
KFintech (Formerly Karvy)
Selenium Building, Financial District, Nanakramguda, Serilingampally,
Rangareddi, Telangana India – 500 032.
Phone:040-67162222/23431551
Email:[email protected]
Lead Managers of the Issue
- Edelweiss Financial Services Limited
- JM Financial Limited
