You are here: Home » Markets » News
Business Standard

Stove Kraft shares gain 16% on debut after touching high of Rs 496

Close at Rs 456; stock currently trades at about 25x its estimated earnings for FY21-similar to Butterfly Gandhimati but almost half that of TTK Prestige

Markets | initial public offerings IPOs

Sundar Sethuraman 

markets, stock market, sensex, correction, nifty, shares, growth, profit, economy, gain
Stove Kraft IPO, which had closed on January 28, had garnered 18 times subscription

Shares of kitchen appliances maker Stove Kraft gained 16 per cent on Friday, the day of its trading debut. The stock closed the session at Rs 456, registering a gain of Rs 61, or 16 per cent, over its listing price of Rs 385.

It touched a high of Rs 496 and low of Rs 435. At the closing price, the company had a market capitalisation of Rs 1,451 crore.

The stock is currently trading at close to 25x its estimated earnings for FY21 — similar to that of Butterfly Gandhimati but almost half that of TTK Prestige.

ALSO READ: Govt, RBI's in-sync approach to economic growth inspires confidence

“Notably, peers enjoy a stronger balance sheet and proven earnings record, compared to Stove Kraft. Despite being in operation for more than two decades and having set up a strong distribution network, Stove Kraft has not delivered up to the mark. While the sharp improvement in earnings during H1FY21 bodes well, we are not certain about the sustainability of the same,” Reliance Securities had said in a note last month.


The Stove Kraft offering, which had closed on January 28, had garnered 18x subscription. The company owns brands such as Pigeon, Gilma, and Black & Decker. It raised Rs 95 crore in fresh capital through the initial public offering.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, February 05 2021. 17:00 IST