The initial public offering of kitchen solutions company Stove Kraft was subscribed 98 per cent on the first day of bidding Monday. The public offer got bids for 57.94 lakh equity shares against offer size of 58.94 lakh shares, subscription data on the exchanges reveal.
The offer size was reduced after the company raised Rs 185 crore from anchor investors last Friday, a day before the issue opening.
The subscription at the retail investor’s end has been full as their reserved portion subscribed 5.3 times, while the portion set aside for non-institutional investors was subscribed 4.73 per cent, but qualified institutional buyers have not started putting their bids yet.
The debut public offer, which will close on January 28, consistsof a fresh issue of Rs 95 crore and an offer for sale of 86.50 lakh equity shares by promoters and investors (Sequoia Capital). The fresh issue proceeds will be utilised for repayment of debts.
The price band for the issue has been fixed at Rs 384-385 per share.
Stove Kraft manufactures and retails of a wide and diverse suite of kitchen solutions under Pigeon and Gilma brands, and has plans to start manufacturing of kitchen solutions under the BLACK + DECKER brand, covering the entire range of value, semi-premium and premium kitchen solutions, respectively.