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 2021 | 40 | – | 1,400 |
| 3 Feb 2021 | 60 | – | 1,800 |
| 2 Feb 2021 | 50 | – | 1,700 |
| 1 Feb 2021 | 45 | – | 1,500 |
| 30 Jan 2021 | 60 | – | 1,700 |
| 29 Jan 2021 | 60 | – | 1,700 |
| 28 Jan 2021 | 50 | – | 1,500 |
| 27 Jan 2021 | 80 | – | 2,000 |
| 25 Jan 2021 | 70 | – | 2,000 |
| 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 |
