The Rs 413-crore IPO, which ran from January 25 to January 28, was subscribed 18 times, with non-institutional investors bidding 32.72 times the allocated quota of shares.
The issue comprised a fresh issue of up to Rs 95 crore and an offer for sale of up to 82.50 lakh equity shares. The price range for the offer was at Rs 384-385 apiece. Stove Kraft had raised a little over Rs 185 crore from anchor investors.
Analysts said that the IPO was priced at 34.5 times PE on a trailing basis, while peers TTK Prestige and Hawkins Cookers were trading at 61 times and 47.5 times, respectively.
They believe the kitchen appliance maker’s brand value, margins and return on capital are lower than its peers, and, even as it has improved its profitability on the back of cost-cutting measures of late, such a trend is unsustainable. They remained neutral on the issue and advised only aggressive investors with a high risk-appetite to participate in the IPO.
The issue was managed by Edelweiss Financial Services and JM Financial Consultants Private Limited.
