Stove Kraft's Rs 412.62-crore initial public offer (IPO) was subscribed 99 percent on Monday, the first day of bidding. The issue received bids for 58.07 lakh equity shares against an offer size of 58.94 lakh shares.

Share Market Live

NSE

As of 4:30 PM, the reserved portion of retail investors was subscribed 5.3 times while non-institutional investors were subscribed 4.73 percent. However, qualified institutional buyers have not started putting their bids yet.

The IPO will close on January 28 and has set a price band 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.

The company received a good response for its anchor book last Friday as it raised a little over Rs 185 crore from anchor investors ahead of its initial public offer.

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.

“Company has priced its issue at 34.5x PE on a trailing basis, its peers TTK Prestige and Hawkins Cookers are currently trading at 61.0x and 47.5x respectively. On an FY20 basis, the Company priced its issue at 301.5x PE. Due to cost-cutting measures, Company margins improved in the H1FY21 which is not sustainable. Cost 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.

(Edited by : Abhishek Jha)

First Published:Jan 25, 2021 1:49 PM IST