Stove Kraft is gearing up to bring their IPO to the market, after having received approval from SEBI in April.

This offering is going to comprise of both a fresh issue segment and an offer for sale segment.

The fresh issue refers to any new shares which are being issued by the company in order to raise capital for expansion or other purposes. 

In this case, Stove Kraft intends to raise Rs. 145 crores. This amount will be utilised for the repayment of borrowings and for other general corporate purposes.

The offer for sale includes those shares which are being sold by an existing shareholder of the company. The amount received from the sale of those shares is credited directly to the shareholder and not to the company.

The offer for sale segment will comprise of 71,63,721 equity shares. The table below summarises the different shareholders who are offloading their stake.


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This is the second attempt by the kitchen appliances manufacturer to launch the IPO. The first time they received approval was in January 2019. However, since more than a year has passed, they had to reapply for approval.

As of now, the estimated date of the IPO launch is set for November 2020

The table below summarises all the information related to the Stove Kraft IPO. The remaining details will be updated once they are available. Questions about the Stove Kraft IPO date, Stove Kraft Limited IPO price and others will be answered.


After the subscription window, the Stove Kraft shares will be listed on both NSE and BSE.


Stove Kraft was originally incorporated in 1999. 

They are primarily involved in the manufacture of kitchen appliances, equipment and utensils.

Stove Kraft operates two manufacturing plants — one in Baddi, Himachal Pradesh, and the other in Bangalore.

They currently have a network of over 429 distributors across 24 states, as well as a presence overseas.


The products manufactured by Stove Kraft can be viewed separately under the three different brands that they promote, namely Pigeon, Gilma and BLACK + DECKER.

The Pigeon brand represents the value segment of the market. This means, the products manufactured under this brand are meant for a larger target group and includes reasonably priced items.

Examples of Pigeon products include cookware like pressure cookers and mixers, cooking appliances like gas stovetops and induction stovetops, as well as household utilities like consumer lights and ladders.

The Gilma brand is meant for a semi-premium segment of the market. Here, the products are more exclusive and command a higher price tag than the Pigeon products.

Examples of Gilma products include chimneys, a variety of cooktops and appliances like microwaves, OTGs and others.

The third brand, BLACK + DECKER includes only premium products. This brand was launched only in 2016 after a brand licensing agreement with Stanley Black & Decker Inc.

The infographic below shows the different products that Stove Kraft manufactures.



Stove Kraft operates primarily on a B2C business model

This means the targeted clientele for the products manufactured by Stove Kraft includes individual retail buyers, rather than other companies.

The company has a presence across 24 states in India, as well as in countries like USA, UK, Netherlands, Sri Lanka and the Middle East.

Apart from the 26,000 retail outlets, Stove Kraft also uses distribution networks to market their products.

They even have tie-ups with brands like Walmart, Big Lots and Belk in the USA.


The company is promoted by Rajendra Gandhi and Sunita Rajendra Gandhi. Together, the Stove Kraft Limited owners hold a 74.62% stake in the company, prior to the Stove Kraft IPO.

Apart from that, Sequoia Capital is the other major shareholder, on account of their investment in Stove Kraft in 2010 and 2013.

The details of the promoters and their respective stakes have been summarised in the table below.



There is an important fact to note here, with regard to the management team at Stove Kraft Limited.

In October 2019, the company hired Rajiv Mehta to be their Chief Executive Officer.

This is a strategic move to improve its presence in the cookware and appliance market in India.

Prior to this, Mehta worked with brands like Puma and Arvind Fashion and improved its brand presence drastically.

During his 9 year stint as the India Managing Director of Puma, Mehta took the brand to the top and established their presence as a dominant force in the market.

“Rajiv has the ability and experience on how to empower big teams, scale the business quickly and build effective brand building strategies. Our primary focus is on building customer trust and making Stove Kraft the one-stop-shop for quality cookware and appliances,” said Stove Kraft Limited owner, Rajendra Gandhi.


The table below contains a summary of the Stove Kraft Limited financials from 2016 till 2020. All the figures stated below are in Rs. crores.


Over the last five years, the total revenue of Stove Kraft Limited has increased at a CAGR of 14.16%.

The Pigeon brand contributes to the majority of the total revenue earned. As of September 2019, 90.26% of the total revenue came from Pigeon. As for Gilma and BLACK + DECKER, they contributed 2.57% and 2.28% respectively.


As for the total assets, that grew at a CAGR of 11.45%.

Until 2018, Stove Kraft was not a profitable company. For 2019 and 2020, they have reported a net profit.


A positive point to note here is that the company usually generates free cash flow from operating activities. Other than in 2016, Stove Kraft’s net cash flow from operating activities has been positive. 

Now we come to the financial borrowings and the indebtedness of the company. 

Over the five year period from 2016 to 2020, the long term debt of the company has increased at a CAGR of 57.85%. As of September 2019, the total borrowings of the company, both current and non-current, amounted to Rs. 317.58 crores. 

In fact, one of the primary purposes of the Stove Kraft IPO is to pay back all or part of the borrowings of the company.


Globally, the market for kitchen appliances is valued at about $253.4 billion, as of 2020.

In India, the overall market for appliances and consumer electronics was valued at Rs. 20,500 crores in 2017. It is expected to grow to Rs. 31,500 crores by 2022.

As for the market for kitchen appliances in India, that was valued at Rs. 1,485 crores in 2017. A CAGR of 9.9% is expected here, and the market is predicted to reach Rs. 2,380 crores by 2022.


The prominent growth drivers, in this case, are increased urbanisation, the fact that the demographic structure of the population is skewed towards the younger generation and the general increase in consumer spending.

The overall market for kitchen appliances is followed by a monopolistic competition structure. There are many sellers and a large number of buyers. 

However, even though the number of players in this industry is large, the majority of the market share lies with a few companies.

Now the term kitchen appliances is a fairly broad division.

There are several types of kitchen appliances, and this gives rise to several sub-categories in this larger market definition.

The two main sub-categories are large cooking appliances and small cooking appliances.

Large cooking appliances include cooktops, chimneys and other similar products. This sub-category is expected to grow at a CAGR of 11.9%, and the sales value is predicted to reach Rs. 15,590 crores by 2023.


In this sub-category, especially for cooktops, Stove Kraft’s brand Pigeon is the market leader. Here, the majority of the market is concentrated among a few key players.

In 2018, a total of 1.21 crores units were sold in this category. Out of that, Stove Kraft supplied 2151000 units. This means the market share of Stove Kraft in the large cooking appliances subcategory was 17.64%.

As for the cooktops alone, Prestige and Gilma jointly made up 25% of the market.


Small cooking appliances include pressure cookers, rice cookers, juicers, blenders and other similar products. This sub-category is expected to have a CAGR of 7.39%, and by 2023, it is predicted to have a value of Rs. 10,630 crores.


This sub-category is more fragmented, with a higher number of market players. Here, Stove Kraft occupies a smaller share of the market and is not the market leader for any of the products.

The graph below shows the market share of Stove Kraft for pressure cookers.


In 2018, the total number of units sold in this category reached 6.19 crores. Out of that Stove Kraft supplied 0.34 crores.

This means the cumulative market share of Stove Kraft in this sub-category was 5.58%.


As mentioned above, the market for kitchen appliances in India is fragmented

There are a large number of companies involved, and the majority of the market share is concentrated among a few firms.

Major competitors for Stove Kraft include TTK Prestige, Gandhimathi Appliances, Hawkins, Bajaj Electricals, Faber, Panasonic, Phillips and others.

The table below compares the key financial figures of Stove Kraft with that of its peers.


If you compare the key financial figures as shown above, it is clear that while Stove Kraft does have a significant market share in this industry, it is a medium-sized company at best.

This industry is highly competitive as all the products sold are close substitutes for each other. Success depends on the right strategy for marketing, outreach and distribution.

There are no barriers to entry in this industry, and this is why newer firms keep coming in to increase the competition.


One of the primary strengths of Stove Kraft Limited is that, through their three brands, they cater to a very large target group of customers. 

Pigeon concentrates on value products, which are of low cost and high utility. Gilma showcases the semi-premium range and BLACK + DECKER is building up a very premium range of products. 

This diversification in clientele can be seen as a competitive strength in this market.

Over the past two decades, Stove Kraft has stuck to the premise of organic growth. 

This means, the company has gradually built up a network of distributors and loyal clientele, while at the same time focusing on innovation and improvements to their product range.

When the growth is gradual, the company generally has the chance to build up strong foundations. This, too, can be perceived as a competitive strength for Stove Kraft, especially against the newer players and younger companies who may not have as strong a base.

The third strength for the Stove Kraft IPO is that the company stands to benefit from a number of government initiatives.

Under the Make in India movement, to give incentives to domestic manufacturers and discourage imports, the government has increased the custom duties on several key products which overlap with Stove Kraft’s product portfolio. 

The Vocal for Local movement, which can be interpreted as the second tranche of Make in India, will serve to bolster this effect.

Stove Kraft manufactures LED lights. Now, if more people start buying indigenous LED lights owing to government initiatives, then the potential market for Stove Kraft will increase.

Similarly, under the Pradhan Mantri Ujjwala Yojana (PMUY), the government intends to provide free LPG connections to the underprivileged. This, again, will increase the market for LPG users in India.

Companies like Stove Kraft Limited, which manufacture cooktops, gas ovens and other large cooking appliances will directly benefit from the increased market size.


Stove Kraft is primarily a manufacturing company, and as you can see in the financial overview above, their expenses are very high. The company does not have any long-standing contracts with their raw material suppliers and therefore, there is no guarantee about the cost of production.

If the expense on raw materials increases or the cost of production rises for any other reason, the company will not be able to break even.

Apart from that, there are several issues that tend to crop up when maintaining two huge production plants in Bangalore and Baddi. There are unresolved legal issues with regard to certain land parcels which fall inside the factory space. There are also certain regulatory issues relating to regular checks and provisions for the health and safety of the workers.

There are several outstanding cases — both criminal and civil — against the company and the Stove Kraft Limited owner, Rajendra Gandhi. From tax evasion to a variety of other violations, the charges cover it all. Further, Rajendra Gandhi may be required to vacate his position as the Director of Stove Kraft owing to several violations under the Companies Act, 2013.

If any of the myriad cases against the company does not get resolved, Stove Kraft can get embroiled in lengthy legal proceedings which adversely impact their operations.

There are large outstanding dues of the company. As of September 2019, Stove Kraft owes a total amount of Rs. 184.7 crores to its different creditors. 

In fact, the company intends to utilise the proceeds from the Stove Kraft IPO to repay its debt. This means, the capital raised will not be used for any productive purpose or expansion plan which can bolster the revenue growth of the company.


The table below summarises the key valuation parameters for Stove Kraft and its peers.


A common thumb rule for checking the valuation of the company is to compare its price-to-earnings ratio with the overall industry average.

In this case, the average price-to-earnings ratio for the industry is 46.85.

If the price-to-earnings ratio of Stove Kraft is higher than the industry average, then we can say that the company is overvalued. Similarly, if the P/E ratio is lower than the industry average, then the company is taken to be undervalued.

The P/E ratio and the other valuation parameters can only be updated once the pricing band and other details with regard to the Stove Kraft IPO have been released.

Until then, we can base our analysis on the past performance of the company and its financials. Stove Kraft has shown a steady growth rate and its financials are not weak. The only cause for concern is the looming size of the long-term debt. However, if the company does manage to expand properly and scale-up their operations, there is no reason why the Stove Kraft IPO should not yield results for investors. 

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