Cello World IPO: The initial public offering of household products and stationery manufacturer Cello World Ltd has opened for public subscription on Monday, October 30. It will conclude on November 1. Till 11:21 am on the first day of bidding, the Rs 1,900-crore IPO has been subscribed 5 per cent receiving subscription for 11,87,651 shares against 2,20,61,947 shares on offer.
The IPO collected Rs 567 crore from anchor investors on Friday. The company has decided to allocate a total of 86.5 lakh equity shares to 39 funds at Rs 648 apiece, which is also the upper end of the price band.
Cello World IPO: GMP Today
According to market observers, unlisted shares of Cello World Ltd remain Rs 120 higher in the grey market as compared to its issue price. The Rs 120 grey market premium or GMP is about 18.52 per cent higher than its upper issue price of Rs 648 per share. This means the grey market is expecting a 18.52 per cent listing gain from the public issue.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
The IPO allotment will take place on November 6, and the listing will take place on November 9.
About Cello World IPO
The issue is a complete offer for sale (OFS) by promoters and other selling shareholders, with no fresh issue of equity share component.
The offer includes a reservation of shares worth up to Rs 10 crore for subscription by eligible employees.
The company has raised the size of its IPO size to Rs 1,900 crore from Rs 1,750 planned earlier. The IPO price has been fixed at Rs 617-Rs 648 per share
The OFS comprises the sale of equity shares by Pankaj Ghisulal Rathod, Gaurav Pradeep Rathod, Pradeep Ghisulal Rathod, Sangeeta Pradeep Rathod, Babita Pankaj Rathod and Ruchi Gaurav Rathod.
The Mumbai-based Cello World has a product portfolio across three key categories — consumer houseware, writing instruments and stationery, and moulded furniture and related products.
In 2017, it ventured into the glassware and opal ware business under the ‘Cello’ brand.
The company has 13 manufacturing facilities in five different locations — Daman, Haridwar (Uttarakhand); Baddi (Himachal Pradesh); Chennai (Tamil Nadu) and Kolkata (West Bengal) as of March 31, 2023. It is also in the process of setting up a glassware manufacturing facility in Rajasthan.
Besides, its net profit rose 30 per cent to Rs 285 crore in FY23 from Rs 219.52 crore in the preceding fiscal. Kotak Mahindra Capital Company Ltd, ICICI Securities Ltd, IIFL Securities Ltd, JM Financial Ltd and Motilal Oswal Investment Advisors Ltd are book-running lead managers.
The shares are proposed to be listed on BSE and NSE.
Morgan Stanley Asia (Singapore) Pte Ltd, BNP Paribas Arbitrage, CLSA Global Markets Pte Ltd, Reliance General Insurance Company, Bajaj Allianz General Insurance Company, ICICI Prudential Mutual Fund (MF), Edelweiss MF, Tata MF and HDFC MF are among the anchor investors.
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