While today will be the last day for Home First’s IPO, the day will also mark the opening of Stove Kraft Ltd’s public issue.
After the initial two days of subscription, Home First Finance IPO has so far been subscribed 2.22 times. Today will be the last day for investors to subscribe to the technology drive non-banking finance company’s issue. The third IPO of 2021, Home First Finance is just behind IRFC and Indigo Paints. While today will be the last day for Home First’s IPO, the day will also mark the opening of Stove Kraft Ltd’s issue. The kitchen appliance manufacturer and home solutions firm is looking to raise Rs 412 crore from investors.
Last day to bid for Home First Finance
Qualified Institutional Buyers (QIB) have so far subscribed Home Firs Finance IPO 1.36 times while retail investors have emerged in the largest numbers so far, subscribing their portion 3.40 times in the two days so far. Non-Institutional Investors (NII) have only subscribed to 61% of their quota of the issue. Investors can bod for the issue in the price band of Rs 517-518 per share. Analysts at Yes Securities said that the issue is priced at post-money P/BV of 3.4x compared to its nearest competitor Aavas Financiers which trades at 6.8x on September BV.
Stove Kraft opens for subscription
Yet another public issue will be entering the market today. Stove Kraft, a leading kitchen appliance manufacturer and home solutions provider is looking to raise Rs 412 crore from the market through its IPO. Priced in at Rs 384-385 per unit, investors can bid for the IPO in a lot size of 38 equity shares and in multiples thereafter. Stove Kraft caters in the sub-premium and premium segment through its brands such as Pigeon, Gilma, and BLACK + DECKER. 75% of the issue is reserved for Qualified Institutional Buyers, 15% for NIIs and only 10% for retail investors. Post issue, promoter holding will come down to 54.36% from the current 61.31% while public shareholding will gain from 38.69% to 45.64%.
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On the financial front, Stove Kraft reported revenue CAGR of 13% over the financial year 2018-2020. “At Rs 385, the stock is available at 1.9x FY20 Market cap/sales,” analysts at ICICI Securities said in a note. On a trailing basis, the issue is priced at 34.5x PE while TTK Prestige and Hawkins Cookers are currently trading at 61.0x and 47.5x respectively, according to Angel Broking.
Grey market
Over the weekend, Home First Finance was trading with a premium of Rs 118 per share in the unlisted space, according to Manan Doshi, Cofounder of UnlistedArena. Doshi who watches the grey market added that Stove Kraft too was trading at a similar premium in the grey market.
