Stove Kraft Ltd. will sell shares at Rs 384-385 apiece at its three-day initial public offering that opens on Monday.
The maiden offer of the owner of Pigeon and Gilma brands comprises a fresh issue of Rs 95 crore and a Rs 317.6-crore offer-for-sale by Sequoia Capital India Investment Holdings I, SCI Growth Investments II and promoters Rajendra Gandhi and Sunita Gandhi, according to its red herring prospectus. The IPO will close on Jan. 28.
The Bengaluru-based company will use the entire proceeds from the fresh issue to pare debt. Edelweiss Financial Services Ltd. and JM Financial Ltd. are the book running lead managers to the issue.
This comes at a time when the participation of retail investors in equity markets in India and around the world has increased following the pandemic-induced lockdowns. The domestic benchmarks, too, are scaling new peaks.
Stove Kraft, in the first six months on the ongoing financial year, saw 76.9% of its sales come from Pigeon. The company's sales from southern India accounted for 47.76% of its revenue during the period.
Its revenue from operations stood at Rs 328.8 crore in the April-September 2020 period, up 4.2% from the year earlier. Net profit jumped to Rs 28.8 crore from Rs 4.4 crore a year ago. Operating margin expanded to 13.7% from 5.9%.
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