Cello World's ₹1,900 Crore IPO Subscription Opens on October 30, 2023

Cello World IPO will be available for subscription starting on Monday, October 30, and the subscription period will conclude on Wednesday, November 1. Before that, the allocation of shares to anchor investors is set to occur on Friday, October 27.

It's important to note that the IPO price range for Cello World shares has been established at ₹617 to ₹648 per share, each having a face value of ₹5. This means you can purchase shares in this price range during the IPO.

Cello World IPO Details

Company Profile:

Cello World Limited is a well-known Indian consumer product company that primarily operates in three main categories writing instruments and stationery, molded furniture, and consumer housewares. With over 60 years of experience in the consumer product industry, the company has gained valuable insights into consumer preferences and choices.

It has 13 manufacturing units located in 5 different locations in India which are Daman, Haridwar (Uttarakhand), Baddi (Himachal Pradesh), Chennai (Tamil Nadu), and Kolkata (West Bengal). Also, they have plans to establish a glass manufacturing unit in Rajasthan equipped with European machinery, aimed at boosting productivity and expanding their manufacturing capabilities. As of March 31, 2023, the company offers a wide array of 15,841 unique product variations (stock-keeping units or SKUs) across all its product ranges. 

Approximately 80% of Cello World's revenue comes from in-house manufacturing operations, while the remaining portion (mainly steel and glassware products) is produced by third-party contract manufacturers.

The company's key strengths include:

1. Strong Market Position and Branding: Cello World has established itself as a prominent player in its industry with a well-recognized and trusted brand.

2. Diverse Product Range: They offer a broad spectrum of products to cater to various customer needs and preferences.

3. Proven Business Expansion: Cello World has a successful track record of growing its businesses and expanding its product categories.

4. Experienced Management Team: The company is guided by a management team with deep expertise in their domain.
 

IPO Allocation:

•    Qualified Institutional Buyers (QIBs): Up to 50% of shares
•    Non-Institutional Investors (NIIs): Not less than 15% of shares
•    Retail Investors: Not less than 35% of shares
•    Employee Reserve Portion: Eligible employees are offered a ₹61 per equity share discount.

Promoters' Share Offload:

The IPO will see various promoters offload their shares:

•    Pradeep Ghisulal Rathod: ₹300 crore worth of shares
•    Pankaj Ghisulal Rathod: ₹736 crore worth of shares
•    Gaurav Pradeep Rathod: ₹464 crore worth of shares
•    Sangeeta Pradeep Rathod: ₹200 crore worth of shares
•    Babita Pankaj Rathod and Ruchi Gaurav Rathod: ₹100 crore worth of shares each

Cello World was founded by the late Ghisulal Dhanraj Rathod, who was the promoter and father of two of the current promoters, Pradeep Ghisulal Rathod and Pankaj Ghisulal Rathod.

Grey Market Premium (GMP)

•    The grey market premium for Cello World IPO is +95. This indicates that shares are trading at a premium of ₹95 in the grey market.

•    Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Cello World shares is indicated at ₹743 apiece, which is 14.66% higher than the IPO price of ₹648.