Stove Kraft Limited Initial Public Offer Bid/ Offer period to open on January 25, 2021

 ·        Price band fixed at ₹384 to ₹385 per equity share

·        Bid/ Offer period to remain open from Monday, January 25, 2021 to Thursday, January 28, 2021

Mumbai, January 21, 2021: Stove Kraft Limited (the “Company’), one of the leading brands for kitchen appliances in India and one of the dominant players for pressure cookers and amongst the market leaders in the sale of free standing hobs and cooktops (Source: F&S Report, sponsored by our Company), will open the Bid/ Offer in relation to its initial public offer of equity shares of face value of ₹10 each (“Equity Shares” and such initial public offer, the “Offer”) on Monday, January 25, 2021. The price band of the Offer has been fixed at ₹384 to ₹385 per Equity Share. The Bid/ Offer period will close on Thursday, January 28, 2021. The Company and the Selling Shareholders may, in consultation with the BRLMs, consider participation by Anchor Investors which shall be one Working Day prior to the Bid/ Offer Opening Date.

The initial public offering comprises of a fresh issue aggregating ₹950.00 million (“Fresh Issue”) and an offer for sale of up to 8,250,000 equity shares comprising of up to 690,700 equity shares by promoter, Rajendra Gandhi, up to 59,300 equity shares by promoter, Sunita Rajendra Gandhi (together with Rajendra Gandhi, “Promoter Selling Shareholders”), up to 1,492,080 equity shares by Sequoia Capital India Growth Investment Holdings I (“SCI-GIH”) and up to 6,007,920 equity shares by SCI Growth Investments II (“SCI”, together with SCI-GIH, “Investor Selling Shareholders”) (the Investor Selling Shareholders together with the Promoter Selling Shareholders, the “Selling Shareholders”).

 

Bids can be made for a minimum of 38 Equity Shares and in multiples of 38 Equity Shares thereafter.

 

The Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the SEBI Issue of Capital and Disclosure Requirements Regulations, 2018 (“SEBI ICDR Regulations”) and is being made in compliance with Regulation 6(2) of the SEBI ICDR Regulations, wherein at least 75% of the Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (“QIB Category”), provided that the Company and Selling Shareholders may, in consultation with the BRLMs, allocate up to 60% of the QIB Category to Anchor Investors at the Anchor Investor Allocation Price on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds only at or above the Anchor Investor Allocation Price.

In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion. Further, such number of Equity Shares representing 5% of the QIB Category (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Category shall be available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. If at least 75% of the Offer cannot be allotted to QIBs, the Bid Amounts received by the Company shall be refunded.

 

Further, not more than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors and not more than 10% of the Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective ASBA accounts, and UPI ID, in case of RIBs, if applicable, in which the corresponding Bid Amounts will be blocked by the SCSBs or under the UPI Mechanism, as applicable. Anchor Investors are not permitted to participate in the Offer through the ASBA process.

 

The Net Proceeds from the Fresh Issue are proposed to be utilised for (i) ₹760 mn towards Repayment/pre-payment, in full or part, of certain borrowings availed by the Company; and (ii) for general corporate purposes.

 

The Equity Shares offered in this Offer are proposed to be listed at both BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”, together with BSE, the “Stock Exchanges”) post the listing.

 

Edelweiss Financial Services Limited and JM Financial Limited are the Book Running Lead Managers to the Offer.

 

All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the Red Herring Prospectus (“RHP”).

 

Disclaimer:

 

Stove Kraft Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its equity shares (“Equity Shares”) and has filed a red herring prospectus dated January 19, 2021 (“RHP”) with the Registrar of Companies, Karnataka situated at Bengaluru and thereafter with SEBI and the BSE Limited and the National Stock Exchange of India Limited. The RHP is available on the website of the SEBI at www.sebi.gov.in as well as on the websites of the book running lead managers, Edelweiss Financial Services Limited and JM Financial Limited at www.edelweissfin.com and www.jmfl.com, respectively, and the websites of BSE Limited and the National Stock Exchange of India Limited at www.bseindia.com and  at www.nseindia.com, respectively.Investors should note that investment in Equity Shares involves a high degree of risk and for details relating to such risks, see "Risk Factors" on page 19 of the RHP.

 

This announcement has been prepared for publication in India and may not be released in the United States. This announcement does not constitute an offer of securities for sale in any jurisdiction, including the United States, and any securities described in this announcement may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933 or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements. However, the securities described in this announcement are not being offered or sold in the United States.

 

Disclaimer Clause of Securities and Exchange Board of India (“SEBI”): SEBI only gives its observations on the offer documents and this does not constitute approval of either the Issue or the specified securities or the offer document. The investors are advised to refer to page 269 of the RHP for the full text of the Disclaimer Clause of SEBI

 

Disclaimer clause of BSE: It is to be distinctly understood that the permission given by BSE should not in any way be deemed or construed that the RHP has been cleared or approved by BSE nor does it certify, warrants or endorses the correctness or completeness of any of the contents of the RHP. The investors are advised to refer to page 271 of the RHP for the full text of the Disclaimer Clause of BSE.

 

Disclaimer clause of NSE: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to page 271 of the RHP for the full text of the Disclaimer Clause of NSE.

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