Stove Kraft IPO

Stove Kraft IPO

Stove Kraft was originally incorporated in 1999. They are primarily involved in the manufacture of kitchen appliances, equipment and utensils. Stove Kraft is a kitchen solution and an emerging home solutions brand. Further, it is one of the leading brands for kitchen appliances in India and is one of the dominant players for pressure cookers and a market leader in the sale of free-standing hobs and cooktops.

Stove Kraft is engaged in the manufacture and retail of a wide and diverse suite of kitchen solutions under its Pigeon and Gilma brands and proposes to commence manufacturing of kitchen solutions under the BLACK + DECKER brand, covering the entire range of value, semi-premium and premium kitchen solutions, respectively.

Its kitchen solutions comprise of cookware and cooking appliances across its brands, and its home solutions comprise various household utilities, including consumer lighting, which not only enables it to be a one-stop-shop for kitchen and home solutions but also offer products at different pricing points to meet diverse customer requirements and aspirations.

The company has a strong distribution network as under the “Pigeon” brand, it has 651 distributors in 27 states and 5 union territories and 12 distributors for exports and under the “Gilima” brand, it has 65 stores across 4 states and 28 cities.

It not just distribute its products in the Indian market but also exports them to countries like the USA, Mexico, Kenya, Qatar, Sri Lanka, Fiji, Bahrain, Kuwait, etc. Stove Kraft has manufacturing facilities at Bengaluru (Karnataka) and Baddi (Himachal Pradesh).

All Pigeon and Gilima branded appliances are manufactured at its Bengaluru unit and the Baddi facility focuses on the Oil Company Business (OCB) to manufacture products like LPG stoves, inner lid cookers, etc.

Products and Brands:

Stove Krafts products are sold under three brands, viz. Pigeon, Gilma and BLACK + DECKER to cater to the value, semi-premium and premium customer segments, respectively. Set out below is a brief overview of the class of products retailed under each of the brands:

Products and Brands of Stove Kraft IPO


Pigeon, which is value for money brand, offers a wide array of products under various sub-categories. Set out below is an overview of the products currently offered by us under the Pigeon brand:

Pigeon brand Product range

Some of the marquee innovative products, such as the Super Cooker, Infinity glass cooktops and Super Storm Advanced mixer grinder, are sold under the Pigeon brand. The Pigeon ‘super cooker’ is an innovative offering which provides the functionalities of straining, serving, induction cooking compatibility and non-stick, energy-efficient cooking in a single product.


Gilma Products

Gilma brand, which focuses on the semi-premium customer segment, is sold exclusively through Gilma branded stores which are designed to offer the customer a modular kitchen experience. Currently, the Gilma portfolio comprises of chimneys, hobs and cooktops across price ranges and design offerings. We believe that our Gilma products combine premium design with effective performance, offered at a competitive price. While Gilma chimneys come built with higher suction power and a lifetime warranty, the hobs offer features such as anti-rust stainless steel body, energy efficiency and one-touch auto-ignition. Similarly, Gilma LPG stoves are designed keeping in mind thermal efficiency, durability and portability. Gilma LPG stoves use toughened glass and brass burners and come with a two-year warranty.


BLACK + DECKER is a renowned name internationally in the field of, inter alia, kitchen appliances. Presently, we offer the following products under the BLACK + DECKER brand, aimed at the premium segment of customers:

BLACK + DECKER Products Range

IPO Details:

Subscription Dates 25 – 28 January 2021
Price Band INR 384 – INR 385
Fresh issue INR 95 crores
Offer For Sale INR 317.63 crores
Total IPO size INR 412.63
Minimum bid (lot size) 38 Shares
Face Value  INR 10 per share
Retail Allocation 10%
Listing On NSE, BSE

Strengths of the Company:

    • A one-stop-shop for a well-recognized, award-winning portfolio of kitchen solutions brands with a diverse range of products across consumer preference
    • Widespread, well-connected distribution network with a presence across multiple retail channels and a dedicated after-sales network
    • Strong manufacturing capability with efficient backward integration;
    • Consistent focus on quality and innovation
    • Professional management with a successful track record and extensive experience in the kitchen solutions industry, and a young and dynamic workforce
    • Strong track record and financial stability

IPO Objective:

    • To make the repayment or prepayment payment of the company’s borrowings fully or partially
    • To meet general corporate purposes.

Financial Performance:

Financial performance (in INR crore)
  FY2018 FY2019 FY2020 H1 FY2021
Revenue 534.6 642.6 672.9 329.5
Expenses 547.1 641.4 669.4 300.7
Net income -11.7 0.9 2.9 30.1
Margin (%) -2.2 0.1 0.4 9.1

IPO Tentative Time Table

21 Jan 2020: Price Band announced

22 Jan 2020: Anchor List

25 Jan 2021: Offer Opens

28 Jan 2021: Offer Closes

3 Feb 2021: Finalization of Basis of Allotment

3 Feb 2021: Unblocking of ASBA“

4 Dec 2020: Credit to Demat Accounts

5 Feb 2021: Listing on NSE & BSE


    • Expenses on raw materials increase or the cost of production rises for any other reason, the company will not be able to break even.
    • There are unresolved legal issues with regard to certain land parcels which fall inside the factory space.
    • There are several outstanding cases — both criminal and civil — against the company and the Stove Kraft Limited owner, Rajendra Gandhi.


Eyeing the brand reorganization and their focus on the innovation of products to meet the needs of the customer we expect that the fundamental of the company will boost up. The company’s revenue from operations stood at Rs 328.8 crore in the April-September 2020 period, up from 4.2 percent from the year earlier. Its net profit jumped to Rs 28.8 crore in the same period, against Rs 4.4 crore a year ago. Stove Kraft IPO is priced at 34.5x PE on a trailing basis while the PE of the industry is 46x. We assign a “Subscribe” rating only for listing gain.

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