StoveKraft Limited

IPO Details

Here is snap shot of the IPO

• Issue Opening – 25th Jan 2021
• Issue Closing – 28th Jan 2021
• Price Band – INR 385
• Lot Size – 38
• Minimum Investment Amount – INR 14,630

The minimum price band is 384 INR but I have mentioned maxi mum 385 INR above as you should apply at maximum price for increasing the allocation chances.

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Business Overview

Stovekraft limited is largest kitchen appliances Company in India. The Company has International presence. It exports the products to Middle East, Kenya, Uganda, Qatar, Sri Lanka, Fiji, Bahrain, Kuwait, Oman and Tanzania.

Below are major brands from the Company along with Products it sell under those brands. Note Pigeon and Gilma are the flagship brands of the Company.

• Pigeon brand
  • Pressure Cooker
  • Non stick cookware
  • Stainless Steel, Induction and Gas cooktops
  • Mixer Grinder
  • Chimney
  • Emergency Lamps
  • Ladders and Cloth Dryers
  • Cleaning Range
  • Kitchen Utilities
  • Water bottle and Flask
  • Kitchen Utilities
• Gilma Brand
  • Chimneys
  • HOBs
  • Cook Tops
  • Chairs
  • Digital Safe
  • Microwave OTG
  • Built in Oven
• Black+Decker
  • Stovekrafthas tie up with US MNC Black+Decker to sell its products in India
  • Drills
  • Grinders
  • Saws
  • Wood working
  • Dust Management
  • Fastening
• Pigeon LED
  • LED lights

The Company has two manufacturing locations one in Bangalore and other one in Himachal Pradesh. The Company has tie up with Oil India, HPCL and BPCL for HOBs. This also propels growth and visibility of the Brand.

The Company was formed in year 1994 so within 24 years it has become one of the leading name in Kitchen appliances segment which is quite an achievement for the Company.

The Pigeon brand of the Company has 651 distributors in 27 states and 5 union territories.Under the Gilima brand, it has 65 stores across 4 states and 28 cities. So it has presence in Pan India which is good for the Company.

Financial Snapshot

Below is the Financial Snapshot of the Company in year 2020.

• Total Assets – 4,172
• Total Revenue – 6,729
• Net Profit – 31.7

IPO Subscription Status

I will update this section on the last day of the subscription as per the trading plan mentioned in the Make Money with IPO Analysis article. This section will be updated at that time.

• QIB – 00.08 times
• NII – 01.85 times
• RII – 13.08 times
• Total Subscription is 02.93 times

Below is meaning of the Key terms used above

• QIB is (Institutes or Mutual Funds like HDFC AMC etc)
• NII is (People bidding for more than 2 lakhs in IPO application)
• RII is (People bidding for less than 2 lakhs)
• Employee and Others are Reserved Quota Investors.

My Opinion

Stovekraft limited is in Kitchen Appliances sector. The Company is largest in this sector in India. There are other listed players like Prestige, Hawkins and Butterfly Gandhimathi operating in the same sector. But as of now it is dominated by Unorganized sector and has huge market in India.

Unorganized sector market share will be eaten up slowly by organized players. It also has tie up with MNC which also will benefit the Company. It will also add up additional revenue stream by tapping into MNC products. Due to above stated facts the Company may see good subscription and may give listing gains.