Stove Kraft received Board approval on 25 May 2026 to expand its international footprint through the incorporation of a wholly-owned subsidiary in China and the formation of a joint venture with a local partner. The strategic moves aim to facilitate the trading of goods and the manufacture of triply sheets for cookware. These initiatives are subject to necessary approvals from the Reserve Bank of India, the Foreign Exchange Management Act, 1999, and regulatory authorities in the People's Republic of China.

Wholly-Owned Subsidiary Details

The Board approved the incorporation of Stove Kraft Guangzhou Import Export Limited, or another name as approved by Chinese regulators. Stove Kraft Limited will hold 100% of the shareholding in this entity through cash consideration. The subsidiary will operate in the trading sector, dealing in goods required by the company from time to time. The final name and date of incorporation will be disclosed once the entity is formally established.

Joint Venture Agreement

In a parallel development, the company agreed to form a joint venture with Ningbo Wochi New Materials Co.,Ltd. The joint venture company will be established in China with a 50-50 shareholding structure between Stove Kraft’s proposed wholly-owned subsidiary and the Chinese partner. The primary purpose of this agreement is the manufacture of triply sheets, circles, and other products required for cookware.

Governance and Terms

The joint venture agreement outlines specific governance rights to ensure balanced control between the partners. Both Stove Kraft’s subsidiary and Ningbo Wochi New Materials Co.,Ltd. will have the authority to appoint or change their nominees on the board of directors. In the event of future share issuance, both parties retain the first right of subscription in equal proportion. Furthermore, any changes to the capital structure will require joint approval from both shareholders. The company confirmed that while the transaction falls under related party transactions, it will be conducted on an arm’s length basis.

Stove Kraft Limited paid a fine of ₹7,080 to the National Stock Exchange of India Limited (NSE) following a three-day delay in submitting its shareholding pattern for the quarter ended 31 March 2026. The penalty, comprising a base fine of ₹6,000 and GST of ₹1,080, was levied for non-compliance with Regulation 31 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the amount was paid on 16 May 2026.

The delay occurred because the company uploaded the shareholding pattern on the BSE portal on 09 April 2026, operating under the impression that the filing was covered under the single filing system via API-based integration between stock exchanges. However, the shareholding pattern filing was not part of this system, necessitating a separate submission to the NSE, which was completed on 24 April 2026.

The Board of Directors reviewed the compliance lapse during its meeting held on 25 May 2026. The Board noted that the delay was due to an oversight and occurred inadvertently. Consequently, the Board advised management to ensure that such errors do not happen in the future.

The company stated that the delayed compliance and the subsequent payment of the fine have no impact on its financial, operational, or other activities. The disclosure was made pursuant to Regulation 30 of the SEBI Listing Regulations and SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated 30 January 2026.