Stove Kraft IPO GMP Today, Check Daily Movement


Last updated on February 4, 2021

As it is raining IPOs in India, the next offer in line is Stove Kraft. The Ramanagar-based kitchen appliance company plans to launch its maiden offer on 25 January 2021. The company will raise INR95 crores towards repayment/pre-payment of borrowings and general corporate purposes. In addition, shares worth up to INR317.62 crore will be sold by promoters Rajendra Gandhi and Sunita Rajendra Gandhi and private equity investor Sequoia Capital. In this article, you can see how the grey market premium (GMP) of Stove Kraft IPO is developing. But before that, here are some vital details of the offer:

Stove Kraft IPO details

Subscription Dates 25 – 28 January 2021
Price Band INR384 – 385 per share
Fresh issue INR95 crores 
Offer For Sale 8,250,000 shares (INR316.8 – 317.62 crore)  
Total IPO size INR411.8 – 412.62 crore
Minimum bid (lot size) 38 shares
Face Value  INR10 per share
Retail Allocation 10%
Listing On NSE, BSE

Through two entities, Sequoia currently owns 38.39% equity shares in the company and plans to offload nearly 65% of its shareholding. An important factor to watch out in this IPO is that retail investors will get only 10% shares as the company hasn’t been consistent with profitability. That being said, grey market activity has started with nearly 20% premium over the IPO price.

Read Also: Upcoming IPOs in 2021 – Most interesting IPOs lined up

Stove Kraft IPO GMP (Grey Market Premium) rates

Date GMP (in INR) Kostak (in INR) Subject to Sauda (in INR)
4 Feb 2021401,400
3 Feb 2021601,800
2 Feb 2021501,700
1 Feb 2021451,500
30 Jan 2021601,700
29 Jan 2021601,700
28 Jan 2021501,500
27 Jan 2021802,000
25 Jan 2021702,000
23 Jan 2021 70
22 Jan 2021 80

As mentioned above, the company’s financial performance has been uneven and the table below fully captures this inconsistency. The latest six months has been the only timeframe in the last 3.5 years when the company has come closer to double-digit profitability. Given the limited profitability of the company, grey market premiums are likely to remain rangebound.

Stove Kraft’s financial performance (in INR crore)

  FY2018 FY2019 FY2020 H1 FY2021
Revenue 534.6 642.6 672.9 329.5
Expenses 547.1 641.4 669.4 300.7
Net income -11.7 0.9 2.9 30.1
Margin (%) -2.2 0.1 0.4 9.1


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