Sequoia Capital-backed kitchen appliances manufacturer Stove Kraft Ltd has fixed a price band of ₹384-385 per share for its Initial Public Offering (IPO), which opens on on Monday. The Benguluru-based company is looking to raise ₹412.65 crore at the upper band, and ₹411.82 crore at the lower price band.

The IPO comprises a fresh issue of ₹95 crore and an Offer For Sale of upto 82.50 lakh shares, including 6.9 lakh shares by promoter Rajendra Gandhi and up to 59,300 shares by another promoter Sunita Rajendra Gandhi. Sequoia Capital India Growth Investment Holdings-I would also tender up to 14.92 lakh shares and up to 60.07 lakh by SCI Growth Investments II.

The company would also be looking at raising funds through anchor participation prior to the IPO, which closes on Thursday (Tuesday, January 26 being a holiday).

Net proceeds

The company proposes to use ₹760 crore of the net proceeds from the fresh issue for re-payment of its certain borrowings and for general corporate purposes. Following the IPO, Stove Kraft plans to list its shares on both BSE and the National Stock Exchange of India Ltd.

Edelweiss Financial Services Ltd and JM Financial Ltd are the Book Running Lead Managers to the issue.

Pressure cooker maker

Stove Kraft is into manufacturing and sales of pressure cookers, free-standing hobs and cook-tops, and had manufacturing facilities in Bengaluru and Baddi, Himachal Pradesh.

The company’s IPO is the fourth IPO in January, after Indian Railway Finance Corporation which closed on Wednesday and Indigo Paints (opened on Wednesday) and Home First Finance Company, which opened on Thursday.

Related Topics