Stove Kraft's Rs 412.62 crore share sale via initial public offering (IPO) was oversubscribed on second day of the issue. The IPO was subscribed 1.77 times as of 1:30 pm on the second day of the issue, data from National Stock Exchange showed. Stove Kraft IPO received over 1 crore bids for its shares compared with 58.94 lakh shares on the offer. More than 83 lakh shares received the bids at the cut-off price, data showed.
Stove Kraft IPO was witnessing huge demand from retail investors as the portion reserved for them was subscribed 5.24 times. While no bids were received by the qualified institutional buyers (QIBs), data showed.
The Bengaluru-based kitchen appliances maker is planning to raise Rs 412.62 crore from the IPO by selling equity shares in the price band of Rs 384-385 per share.
Stove Kraft sells kitchen appliances under the brand name of Pigeon and Gilma. The company is planning to manufacture value, premium, and semi-premium kitchen supplies under the "Black + Decker" brand. Its product portfolio has more than 660 kitchen solutions including cookware, cooking appliances, household utilities. In 2019, the company also started manufacturing Pigeon LED products.
The primary objectives of the Stove Kraft IPO are to make the repayment or prepayment of company's borrowings fully or partially and to meet general corporate purposes.
Retail investors can bid for Stove Kraft shares in lot size of 38 shares in the price band of Rs 384-385 per share. A retail individual investor can apply for maximum of 13 lots or 494 shares. At the upper price band of Rs 385, an investor can invest maximum of Rs 1.90 lakh.