Stove Kraft IPO nears oversubscription at close of first day of bidding

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New Delhi, Jan 25 (PTI) Stove Kraft's initial public offer neared oversubscription on Monday, the first day of bidding.

The Rs 412.62-crore initial public offer (IPO) of the manufacturer of kitchen appliances received bids for 58,38,776 shares against 58,94,642 shares on offer, translating into 99 per cent subscription, according to the data available with NSE.

The category reserved for non institutional investors was subscribed 5 per cent and those for retail individual investors 5.37 times.

The offer comprises a fresh issue of up to Rs 95 crore and an offer for sale of up to 82.50 lakh shares.

Price range for the offer, which would close for subscription Thursday, is at Rs 384-385 per share.

Equity markets will remain closed on Tuesday for Republic Day.

Stove Kraft had raised a little over Rs 185 crore from anchor investors last week.

At the upper end of the price band, the initial public offer is expected to fetch Rs 412.62 crore.

Sequoia Capital-backed firm proposes to utilise the net proceeds from the fresh issue towards repayment or pre-payment of certain borrowings availed by the firm and for other general corporate purposes.

The company is engaged in the manufacture and retail of a wide and diverse suite of kitchen solutions under Pigeon and Gilma brands.

Edelweiss Financial Services Limited and JM Financial Limited are the managers to the offer. PTI SUM RUJ RUJ