Cello World, a stationary and other consumer products maker, has commenced its initial public offering (IPO) subscription today, October 30, with a closing date on November 1. The company is planning to raise Rs 1,900 crore solely through an offer-for-sale by the Rathod family, without any fresh issue.
The firm is based in Mumbai and owns 13 production sites across Daman, Haridwar (Uttarakhand), Baddi (Himachal Pradesh), Chennai (Tamil Nadu), and Kolkata (West Bengal) as of March 31, 2023. Cello World offers a range of products in three primary segments: consumer houseware, writing tools and stationery, and molded furniture and associated items.
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Price Band
The price band for Cello World's IPO has been set at Rs 617 to Rs 648 per share.
Lot Size
Investors are required to bid for at least 23 equity shares and can increase their bid in multiples of 23. Retail investors will need to invest a minimum of Rs 14,904, and at the higher end, the bidding amount will be Rs 1,93,752.
Key Dates
The allotment of shares for the Cello World public issue will be determined and concluded by Wednesday, November 1.
The company will finalize the share allotment by November 6 and deposit shares into eligible investors' demat accounts by November 8. The stock is scheduled to debut on the BSE and NSE on November 9 as part of the IPO schedule.
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Cello World's Issue Size
Cello World's IPO is aimed at raising a total of Rs 1,900 crore, and this capital will be exclusively sourced through an offer-for-sale by the Rathod family, without any fresh issue.
In the Offer for Sale (OFS), the company's promoters Pradeep Ghisulal Rathod, Pankaj Ghisulal Rathod, Gaurav Pradeep Rathod, and selling shareholders Sangeeta Pradeep Rathod, Bibita Pankaj Rathod, and Ruchi Gaurav Rathod will divest a portion of their shares in the firm.
IPO Reservation
Around 50 per cent of the allocation will be for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors, and 35 per cent for retail investors. There's a reservation of up to Rs 10 crore for eligible employee subscriptions.
The proceeds from the IPO will exclusively benefit the selling shareholders.
Use of Proceeds
The sole aim of the proceeds encompasses realizing the benefits of listing equity shares on stock exchanges and executing Rs 1,900-crore OFS, which will inturn elevate the firm's visibility and bolster its brand image.
As of March 2023, Cello World offered an extensive array of 15,841 stock-keeping units (SKUs) covering various product categories. In 2017, it expanded into the glassware and opalware segment as well.
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