Cello World’s Rs 1,900-crore IPO opens, offer subscribed 7%

Cello World’s Rs 1,900-crore IPO opens, offer subscribed 7%

Cello World, an emerging company in the consumer-ware market, initiated an Initial Public Offering (IPO) valued at Rs 1,900 crore, generating a considerable buzz among potential investors. However, the first day of the IPO’s bidding witnessed a relatively slow start, with a subscription rate of merely 7 percent recorded by noon on October 30.

Investors displayed moderate interest by submitting bids for a total of 14.48 lakh equity shares, which accounted for a small fraction of the total offer size of 2.2 crore shares. The price band for the IPO was established within the range of Rs 617 to Rs 648 per share, providing investors with the opportunity to bid for shares within this specified range, catering to a diverse range of investment preferences.

Notably, the IPO was structured exclusively as an offer for the sale of shares by the company’s promoters, the Rathore family, highlighting their strategic decision to reduce their ownership stake by divesting their existing shares to the public, potentially indicative of their confidence in the company’s growth trajectory. Interested investors were given until November 1 to participate in the IPO, emphasizing the limited timeframe for potential stakeholders to engage in this promising investment opportunity before the IPO bidding phase concludes.

During the initial public offering (IPO) of Cello World, various categories of investors exhibited distinct levels of engagement. Retail investors secured 9 percent of the shares allocated to them, while high net worth individuals (HNIs) demonstrated a parallel interest in 9 percent of their designated share quota. Notably, the allocation strategy favored retail investors with a reserved share of 15 percent, whereas a more substantial proportion of 35 percent was set aside exclusively for HNIs, indicating a deliberate attempt to balance participation between these two investor groups.

Furthermore, a significant portion of the IPO, constituting half of the total offering, was specifically earmarked for qualified institutional buyers (QIBs). However, their contribution remained relatively subdued, accounting for a marginal 0.005 percent of their share quota. In a distinctive move to foster a sense of inclusivity and recognition, the consumer products company reserved shares worth Rs 10 crore for its employees, providing them with a unique opportunity to purchase these shares at a discounted price of Rs 61 per share compared to the final offer price.

This comprehensive approach highlights the company’s commitment to cultivating a diverse and supportive investment landscape, catering to the specific needs and interests of different investor categories while also acknowledging the significant contributions of its employees to the company’s growth and success.

In conjunction with the ongoing Initial Public Offering (IPO) process, the Mumbai-based firm has effectively secured a substantial amount of Rs 567 crore from anchor investors, capitalizing on the upper price band. This significant investment influx from prominent anchor investors speaks to the company’s strong market appeal and promising growth prospects.

Notable participants in the anchor book encompassed a distinguished roster of entities, including esteemed names such as global financial giants Morgan Stanley, Goldman Sachs, and HSBC, alongside renowned institutional investors like Florida Retirement System, Nomura, HDFC Mutual Fund, and ICICI Prudential Mutual Fund.

Furthermore, Aditya Birla Sun Life Trustee, Tata Mutual, and SBI Life Insurance Company also made noteworthy contributions to the anchor book, underscoring the widespread interest and confidence within the investment community regarding the potential success and future prospects of the company’s IPO. This substantial financial backing from a diverse array of reputable anchor investors serves as a testament to the company’s robust market position and its ability to attract strong support from key players within the financial sector.

Incorporated in 2018, Cello World has swiftly established itself as a key player in the consumer-ware market, demonstrating its diversified presence across various sectors, including houseware, writing instruments and stationery, moulded furniture, and glassware. This rapid expansion within the consumer-ware industry indicates the company’s dynamic approach and its ability to cater to a diverse range of consumer needs.