Stove Kraft gets Sebi's go-ahead to launch IPO

Stove Kraft Ltd, manufacturer of kitchen appliances, has received markets regulator Sebi's go-ahead to float its initial public offering.

The public offer comprises a fresh issue of equity shares aggregating up to Rs 145 crore and an offer for sale of up to 71,63,721 equity shares, according to the draft red herring prospectus (DRHP).

The offer for sale comprises up to 6,40,906 shares by promoter Rajendra Gandhi; up to 2,50,000 shares by promoter Sunita Rajendra Gandhi; up to 13,11,205 shares by Sequoia Capital India Growth Investment Holdings and up to 49,61,610 shares by SCI Growth Investments II, the DRHP noted.

The company, which filed its draft papers with the regulator in February, obtained Sebi's observations on April 30, the latest update with the markets watchdog showed.

Sebi's observations are necessary for any company to launch public issues such as initial public offer, follow-on public offer and rights issue.

The company 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's shares are proposed to be listed on stock exchanges.

The book running lead managers to the offer are Edelweiss Financial Services and JM Financial.

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

It is a kitchen solutions and an emerging home solutions brand. The kitchen solutions comprise cookware and cooking appliances across brands, and home solutions comprise various household utilities, including consumer lighting.