Mumbai: Kitchen appliances brand ‘Stove Kraft Limited’ will open the bid in relation to its initial public offer of equity shares of face value of Rs 10 each on Monday, January 25, 2021.
The price band of the offer has been fixed at Rs 384 to Rs 385 per equity share. The bid, offer period will close on Thursday (January 28). 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 opening date.
The initial public offering comprises of a fresh issue aggregating Rs 950.00 million 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, up to 1,492,080 equity shares by Sequoia Capital India Growth Investment Holdings I and up to 6,007,920 equity shares by SCI Growth Investments II.
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 per cent of the Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers (QIBs), provided that the Company and Selling Shareholders may, in consultation with the BRLMs, allocate up to 60 per cent of the QIB Category to Anchor Investors at the Anchor Investor Allocation Price on a discretionary basis in accordance with the SEBI ICDR Regulations, 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 per cent of the QIB Category (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only.
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 per cent of the Offer cannot be allotted to QIBs, the Bid Amounts received by the Company shall be refunded.
Further, not more than 15 per cent of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors and not more than 10 per cent 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) Rs 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) post the listing.
Edelweiss Financial Services Limited and JM Financial Limited are the Book Running Lead Managers to the Offer.