Cello World's initial public offering (IPO) recorded a 13% subscription on its first day, primarily driven by non-institutional and retail investors. The absence of Qualified Institutional Buyer (QIB) bids was noted during the opening day of the IPO. The company's Offer for Sale (OFS) is set to close on November 1, 2023.
The OFS, valued at Rs 1,900 crore (Rs 1 crore = $120,127), has priced shares between Rs 617 ($1 = Rs 83.25) and Rs 648. Stakeholders are expected to offload their shares under the OFS, with allocation divided among institutional buyers (50%), non-institutional investors (15%), and retail investors (35%). An additional reservation has been made for employee subscriptions.
Analysts have recommended subscription to the IPO, citing Cello's strong brand presence and diverse product offerings as potential growth drivers. The company's portfolio includes consumer houseware, glassware, writing instruments, stationery, moulded furniture, and other allied products.
In the financial year 2023, Cello reported a significant increase in its revenue and net profit. Revenue rose by 32% to reach Rs 1796.69 crore, while net profit increased by an impressive 30%. Proceeds from the IPO will go directly to the selling shareholders.
The book-runners for Cello's IPO include leading financial institutions such as Kotak Mahindra Capital Company, ICICI Securities, IIFL Securities, JM Financial, and Motilal Oswal.
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