Stove Kraft's Rs 412.62-crore initial public offer (IPO) was subscribed 7.3 times so far on Thursday, the last day of the bidding process. The issue received bids for 4.3 crore equity shares against an offer size of 58.94 lakh shares.

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As of 2:15 PM, the reserved portion of retail investors was subscribed 21.54 times while non-institutional investors subscribed 3.61 times. The portion set aside for qualified institutional buyers has seen a subscription of 44.54 times.

The price band for the issue is set at Rs 384-385 per share. The public issue comprises a fresh issue of Rs 95 crore by the company and a Rs 317.6 crore offer for sale by promoters and investors. The OFS consists of 82.50 lakh shares by promoters and investors.

Ahead of its IPO, the manufacturer of kitchen appliances raised Rs 185 crore from anchor investors.

Meanwhile, the brokerages have assigned a 'Neutral' rating on the company’s IPO given its high valuation compared to listed peers on FY20 earnings. Brokerages are skeptical over the sustainability of the company’s improved profitability in H1FY21.

"Due to cost-cutting measures, the company margins improved in the H1FY21 which is not sustainable. Costs such as traveling, advertisement reduced in H1FY21 due to Covid-19 are going to come back once business comes back to normalcy," Angel Broking said.

It further noted that the company’s brand value, margins and return on capital are lower than its peers and would not get such premium valuations as peers.

First Published:Jan 28, 2021 2:51 PM IST