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Stove Kraft IPO Attracts Retail Investors On First Day

Stove Kraft IPO was subscribed 0.5 times as of 1:40 p.m. on day 1.

A stove top . (Photographer Suzanne Plunkett/Bloomberg News)
A stove top . (Photographer Suzanne Plunkett/Bloomberg News)

Retail investors lapped up shares of Stove Kraft Ltd. on the first day of subscription for its initial public offering amid successes of recent share sales at a time Indian equities are scaling new peaks.

The maiden offer by the owner of Pigeon and Gilma-branded kitchen appliances was subscribed 0.5 times as of 1:40 p.m. on Jan. 25, according to data available on the bourses. The IPO will close on Jan. 28.

Subscription details:

  • Institutional investors: 0.0 times
  • High-net worth individuals: 0.01 times
  • Retail investors: 2.9 times
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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 Bengaluru-based cooking appliances maker will use the entire proceeds from the fresh issue to pare debt.

Before the IPO, Stove Kraft raised Rs 185.68 crore through anchor allotment by issuing 48.2 lakh equity shares at Rs 385 apiece. The shares were bought by 32 entities, including three domestic mutual funds.

Stove Kraft makes pressure cookers, free-standing hobs and cooktops, among others. It has the licence to sell U.S.-based Black+Decker brand in India.

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