Stovekraft IPO Review Should You Apply?

We all have one or another kitchen item from the Pigeon brand in our kitchen. The parent company of the Pigeon brand is Stovekrat. It has been around 20 years that any household company is going to list. In past, we have seen TTK Prestige and Hawkins that made many people millionaires. Stovekraft IPO may make you a millionaire in the coming time. Let’s check the details of the Stovekraft IPO Review which is going to be launch soon.

Stovekraft had made losses in the last 3 years. So we have to check whether the company has the potential to turn around the situation and make things work for the investors. Let’s analyze the company so that we can take an informed decision on Stovekraft IPO.

Stovekraft – Company & Business

The company is dealing in kitchen appliances and home solutions. The company is the market leader in Free-standing Hobs and Cooktops. There are 3 main brands of the company.

  • Pigeon – For mass consumers – Value for money
  • Gilma – Semi-Premium brand
  • Black-Decker – High range, premium brand

Pigeon contributes to the major chunk of the revenue for the company. The main products of the company are Cookware, Cooktops and other kitchen vessels, Small kitchen appliances, etc.

Recently, the company has also started making LED bulbs under the brand name of Pigeon. The company is exporting mainly to the countries like USA, Mexico, Kenya, Sri Lanka, Kuwait. The revenue from the export business is around 10% of the total revenue. So we can say that the other 90% of the revenue comes from the domestic market.

The company has two manufacturing units, one is at Bengaluru-Karnataka and another is at Baddi, Himachal Pradesh. The Bengaluru plant is spread on 16 acres of land and most of the products are being manufactured in the Bengaluru plant only.

The company was incorporated in 1999 in Bengaluru. At the initial time, the company was only manufacturing Gas stoves. Later in 2001, the company has launched its another brand Gilma and in the year 2003 it launched another brand Pigeon. They have started making pressure cookers in 2004 under the brand name of Pigeon.

Stovekraft IPO Review

The main objective of the IPO is to repayment of the debt which is around ₹. 300 crores and part of the fund will be used for future business expansion.

The company has started exporting business in 2014, mainly exporting to USA markets. The company has a strong distribution network.

  • 651 Distributors across India.
  • Business across 27 states and UTs.
  • 12 Distributors for export business.
  • Total 45000+ retail outlets across India.
  • Around 30% of sales come from online.

Revenue break up

Brand NameFY 2018FY 2019FY 2020
Black Decker0.80%2.65%2.70%

Promoters Shareholding in the company is 61.31% as of now, the same will be reduced to 54.36% post IPO. The owner and main promoter of the company is Mr. Rajendra Gandhi who is holding 60.45% of the share capital.

Company Financials

Equity Share Capital18.9024.7124.71
Total Revenue528.95640.94669.81
Net Profits-12.020.733.17
Profit Margin-2.27%0.11%0.47%
Figures in Crores

Stovekraft Market Share in various products

ProductProduct GrowthMarket Share of StovekraftMarket Leader
Cook Tops14%25%Stovekraft
Free Standing Hobs7%20.3%Stovekraft
Non-stick Cookware10%19%TTK Prestige
Pressure Cooker7.5%11.4%TTK Prestige
Electric Kettle6%21%Bajaj

As you can see in the above table the main competitors of the company is TTK Prestige and Bajaj Electricals who are also in the same business and having a good market share.

Positive PointsNegative Points
One of the largest kitchen appliance companies in IndiaLosses in recent years
A vast range of productsHigh debts of around 300 crs.
Various products for the various market segment
Strong brand name – Pigeon
Strong distribution network
High manufacturing capacity at Bengaluru

Stovekraft IPO Details

  • Issue Size: ₹. 412.63 Cr.
  • IPO Price Band: ₹. 384 to ₹. 385
  • Fresh Issue: ₹. 95 Cr.
  • Offer for Sale: ₹. 317.63 Cr.
  • Market Cap: Upto ₹. 1250 Cr. (Post IPO)
  • QIB – 75%
  • Non-Institutional – 15% (HNIs)
  • Retail Investor – 10%
  • Lot Size: 38 Shares
  • Minimum Investment: ₹. 14630
  • Offer Dates: Opens on 25th Jan 2021, Closes on 28th Jan 2021
  • Allotment Date: 02 Feb 2021
  • Refund date: 03 Feb 2021
  • A credit of Equity Share: 04 Feb 2021
  • Listing Date: 05 Feb 2021

Stovekraft IPO Review – FAQs

What is the IPO dates?

The Stovekraft IPO will open on 25th Jan and closes on 28th Jan 2021

Pigeon IPO is the same or different company IPO?

Pigeon is the brand name of the company Stovekraft. Hence the parent company of Pigeon is Stovekraft. So Stovekraft and Pigeon IPO both are the same IPO.

Stovekraft has made loss in year 2018, should I invest in this IPO considering the losses?

Yes, the company had reported loss in the recent past, but at the same time the future opportunity is high and the company is holding a good market share in the kitchen cookware items. But ultimately, it is an individual decision to invest in the IPO.

Where is the company situated?

The Stovekraft company is situated in Bengaluru.
81/1, Harohalli Industrial Area,
Kanakapura Taluk, Ramanagara,
Bangalore, Karnataka 562112, India

What is the minimum amount required for IPO?

The minimum amount required for this IPO is ₹. 14630 for applying 1 lot.

What are the strengths of the company?

Company has good market shares in kitchen cookware. It has a strong distribution network. Pigeon is the strong brand name known to every housewife. Bengaluru plant has higher production capacity for future expansion.

What are the allotment and listing date for this IPO?

Allotment date is 02 Feb 2021 and Listing date is 05th Feb 2021

Stovekraft IPO Review – Should you Apply?

Stovekraft company is dealing in the kitchen cookware products and one of the leading brand in India. The demand of the kitchen cookware is increasing constantly. There is a tough competition from TTK Prestige and Bajaj Electricals, but still the company is able to manage the market share of around 25% on few of the products.

The objective of the company for this IPO is to repay the loan (debt) that the company has borrowed. The part of the fund will also be used for future expansion.

If you are looking for the listing gain only, you should definitely subscribe for this IPO as the grey market premium is ₹. 90-100 as on 23rd Jan 2021.

Growth story for the long term is also looks promising. So if you are an long term investor, then also you may consider applying for this IPO.

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