Stove Kraft Closes 15.8% Higher Than IPO Price On Stock Market Debut
Natural gas burns on a stove top . (Photographer Suzanne Plunkett/Bloomberg News)

Stove Kraft Closes 15.8% Higher Than IPO Price On Stock Market Debut

Shares of Stove Kraft Ltd. gained on market debut after investors piled into its maiden offer that concluded on Jan. 28.

The maker of kitchen appliances under Pigeon and Gilma brands listed at Rs 498 apiece, a 29.35% premium over its issue price of Rs 385, according to data available on the bourses. The stock then fell to close 15.8% higher at Rs 445.95 apiece.

Stove Kraft’s initial public offering was subscribed 18.03 times on the final day of issue, with high net worth investors bidding for 32.72 times the shares on offer. The retail investor portion subscribed 26.03 times.

The maiden offer comprised 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.

Stove Kraft, before the IPO, raised Rs 185.68 crore by issuing 48.23 lakh equity shares to anchor investors at Rs 385 apiece.

The company, in its red herring prospectus, had said it will use the proceeds from the fresh issue to pare debt.

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

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