Stove-Kraft-Limited-IPO-Feature-Image

Stove Kraft is one of the ‘largest Kitchen appliance’ and emerging home solutions brand suppliers in India. It engaged in the manufacturing and retail of a wide and diverse suite of kitchen solutions under the 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. Company has Manufacturing facility in Bengaluru and Baddi and has 651 Distributors in 27 States and five union territories. Its product portfolio has 660+ kitchen solutions including cookware, cooking appliances, household utilities, and others. In 2019, it also started manufacturing Pigeon LED products. Company also export to 14 countries including UAE, United States, Mexico etc.

Stove Kraft Limited IPO

Wants To Apply Online

 

Issue Details

Objects of the issue
  • To Make the Repayment or Prepayment of Borrowings Fully or partially.
  • General corporate purpose.
Issue Size Issue Size – Rs.412.63 Crore

Offer for Sale-Rs317.63.Crore

Fresh Issue- Rs. Rs.95Crore

Face value  

Rs.10 Per Equity Share

Issue Price Rs. 384 – Rs. 385
Bid Lot 38 shares
Listing at  

BSE, NSE

Issue Opens: 25thJanuary2021 – 28th January 2021
QIB 75% of Net Issue Offer
Retail 10% of Net Issue Offer
NIB 15% of Net Issue Offer

Check Stove Kraft Limited IPO Allotment Status

Stove Kraft Limited IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.

One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-

  1. To Stove Kraft Limited IPO Allotment Status
  2. Go to Application Status
  3. Select IPO as Stove Kraft Limited IPO
  4. Enter your PAN Number or Application Id or DP Client Id.

Stove Kraft Limited IPO Allotment Status also available on BSE India

 

Stove Kraft Limited IPO

Application Form

Financial Performance:

2021-01-25-Financial-Performance

Shareholding Pattern:

Shareholding Pattern Pre- Issue Post Issue
Promoters & Promoters Group 61.31 54.36
Public 38.68 45.64

Strengths:

  • Diversified Portfolio among Kitchen solutions.

  • Strong Distribution Network.

  • Strong manufacturing capability with efficient backward integration.

Key Highlights:

  • CAGR in Revenue for 3 years stood at 12.53%

  • Net profit margins of the company are 0.47% for the FY20.

  • Cash flow from operations During FY20 was at Rs.15 crore as against Rs.13 Crore in FY19.

  • Net Debt to Equity ratio stood at 0.77 times as on September 30,2020.

Risk Factors:

  • Company source Major materials Such as Aluminium, Steel from foreign suppliers and any policy changes on import of raw material can significantly increase company’s cost of goods produced.

  • Expansion into new geographic regions and markets may subject to various challenges.

  • Sales may be negatively impacted by increasing competition from companies and local firms with Similar products.

  • Inability or failure to maintain a balance between optimum inventory levels and product offering may adversely affect business, results of operations and financial condition of the company.

Outlook:

Company is engaged in the Manufacturing of kitchen solutions with a presence in south India. and holds 25% of Market share in cooktops highest amongst peers. Company has reported weak financials over the last three years. As on September 30, Company current ratio stood at 0.90 and has a low cash and Bank Balance on account of poor Cash flows over the years which could affect the working capital of the company in the near term. It has a high operating leverage on account of high other expenses and Employee Benefit Expenses which hampered the Company’s profitability in the past but has significantly reduces it’s Other expenses in H1FY21.Company has witnessed reduction in EBITDA margin to 5% in FY20 from 6% in FY19 and 14% in FY18.  On valuation front P/E works out to be 38 times on TTM Basis. The Company will use the proceeds of IPO for the repayment of Debt and seems it has no vision to expand it’s Topline in the near future. We would recommend to Avoid the IPO.

DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014

Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more


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