Shares of Stove Kraft Limited made a stellar market debut on Friday. The stock opened for trading at Rs 498 on the National Stock Exchange, compared to issue price of Rs 385, marking a premium of 29 per cent. On the BSE, Stove Kraft opened at Rs 467, at a premium of 21 per cent.
Stove Kraft's three-day share sale via initial public offering which concluded on January 28 saw huge demand for its shares as the issue was subscribed over 18 times, data from National Stock Exchange showed. Stove Kraft's Rs 412.62 crore IPO was oversubscribed on the second day of issue itself.
The Bengaluru-based kitchen appliances maker raised 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 plans 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 were to make the repayment or prepayment of company's borrowings fully or partially and to meet general corporate purposes.
As of 11:38 am, Stove Kraft shares traded 16 per cent higher from issue price at Rs 448, outperforming the Sensex which was up 0.63 per cent.