New Delhi: Cello World IPO opened on Monday (October 30) for subscription, which will close on November 1. In the bidding that concluded on Friday (October 27), the company gathered Rs 567 crore from anchor investors.
Price band for Cello was fixed at Rs 617 to Rs 648 per equity share of face value of Rs 5. While the floor price for Cello was 123.40 times the face value, the cap price was 129.60 times the same of the equity shares.
The Cello World IPO has allocated up to 50% of the shares in the public offering for Qualified Institutional Buyers (QIB), a minimum of 15% for Non-Institutional Investors (NII), and a minimum of 35% for Retail Investors. Eligible employees participating in the employee reserve segment will receive a discount of ₹61 per equity share.
The price-to-earnings ratio, based on diluted earnings per share for the fiscal year 2023, stands at 46.85 times for the floor price and 49.20 times for the cap price. The lot size for the Cello World IPO is 23 equity shares, with multiples of 23 equity shares thereafter.
Cello World primarily operates in three categories: stationery and writing instruments, molded furniture, consumer housewares, and related products.
Cello was established by the late Ghisulal Dhanraj Rathod, the former promoter, and the father of the two current promoters, Pradeep Ghisulal Rathod and Pankaj Ghisulal Rathod.
Comparatively listed peers of the company include Borosil Ltd (P/E of 50.59), Kokuyo Camlin Ltd (P/E of 57.97), La Opala RG Ltd (P/E of 40.81), Stove Kraft Ltd (P/E of 51.49), TTK Prestige Ltd (P/E of 43.78), Linc Ltd (P/E of 33.39), and Hawkins Cookers Ltd (P/E of 40.23).
In the fiscal year 2023, consolidated revenue from operations increased by approximately 32% to ₹1,796.69 crore, and net profit rose by 29.86% to ₹285 crore.
The Cello World IPO details reveal that it is a complete offer for sale (OFS), where promoters and other shareholders will collectively sell ₹5 face value shares totaling ₹1,900 crore. The offer also includes a reservation of up to ₹10 crore for eligible employees’ subscription.
The offering involves Pradeep Ghisulal Rathod offloading ₹300 crore worth of shares, Pankaj Ghisulal Rathod selling ₹736 crore, Gaurav Pradeep Rathod selling ₹464 crore, Sangeeta Pradeep Rathod selling ₹200 crore, and both Babita Pankaj Rathod and Ruchi Gaurav Rathod selling ₹100 crore worth of shares.