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.
|Objects of the issue||
|Issue Size||Issue Size – Rs.412.63 Crore
Offer for Sale-Rs317.63.Crore
Fresh Issue- Rs. Rs.95Crore
Rs.10 Per Equity Share
|Issue Price||Rs. 384 – Rs. 385|
|Bid Lot||38 shares|
|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:-
- To Stove Kraft Limited IPO Allotment Status
- Go to Application Status
- Select IPO as Stove Kraft Limited IPO
- Enter your PAN Number or Application Id or DP Client Id.
|Shareholding Pattern||Pre- Issue||Post Issue|
|Promoters & Promoters Group||61.31||54.36|
Diversified Portfolio among Kitchen solutions.
Strong Distribution Network.
Strong manufacturing capability with efficient backward integration.
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.
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.
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
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