Stove Kraft IPO

 

The Fourth IPO of 2021 Stove Kraft Ltd. will launch its ₹412-crore initial public offering on Jan 25, 2021.

The company manufactures and sells kitchen solutions under the brand name of "Pigeon" and "Gilima" brands. Its product portfolio has 660+ kitchenware solutions including cookware, cooking appliances, household utilities, and others. 

IPO Details:

Popular for the Pigeon and Gilma brand, Stovekraft is a Bangalore-based kitchen appliances company founded in 1999. It is known for its pressure cookers, non-stick cookware, and cooking stoves, and also makes kitchen chimneys and food blenders among other kitchen utilities. Among Indian brands, it is the market leader in the cooktops (multi-burner stoves) and free-standing stoves categories with a market share of 25%* and 20.3%* respectively. The segment is expected to grow at 13.6%* CAGR in 2020-25. TTK Prestige and Hawkins corner about 48%* and 35%*, respectively, of the pressure cooker market, which is set to grow at 7.4%* CAGR in 2020-25. Pigeon is the third-largest player in the category, with a market share of 11.4%*. It is also the third-largest player in the non-stick cookware space with a 18.9%* market share, with TTK Prestige capturing 58.2%* of the segment. The non-stick cookware category is set to grow at nearly 10%* CAGR till 2025.

Stovekraft has two manufacturing facilities, one in Bengaluru and the other in Baddi, Himachal Pradesh. As of 30 September 2020, it had 651 distributors in 27 states and five union territories. These distributors are, in turn, connected to a dealer network of 45,475 retail outlets. The company reported revenues of ₹534.6 crore of FY18, ₹642.6 crore in FY19, ₹672.9 crore in FY20, and ₹329.5 crore in the first two quarters of FY21. It netted losses to the tune of ₹12 crore in FY18, but has grown profits subsequently. Profits stood at ₹73.6 lakh in FY19, ₹3.1 crore in FY20 and rose significantly to ₹28.7 crore in H1 of FY21.