Day 1 of Cello World IPO Sees 38% Subscription Rate

The Cello World IPO commenced its subscription phase on Monday and demonstrated an impressive 38% subscription rate on its first day. This Initial Public Offering, scheduled to conclude on November 1, 2023, presents a price range spanning from INR 617 to INR 648 per equity share, each having a face value of INR 5.

On the inaugural day, the retail investors’ segment exhibited a 35% subscription rate, while the Non-Institutional Investors (NII) category experienced substantial oversubscription at 94%. Conversely, the Qualified Institutional Buyers (QIB) section displayed a more modest 2% subscription rate, and the employee segment reached a 42% subscription rate.

According to data from the BSE, the Cello World IPO attracted bids for 83,01,022 shares against the total offering of 2,20,61,947 shares. Retail investors submitted bids for 37,81,246 shares out of the 1,07,21,232 shares available for this segment. The NII category garnered bids for 43,27,105 shares against the 45,94,814 shares on offer. In contrast, the QIB portion received bids for 1,16,840 shares, compared to the 65,66,045 shares available. The employee category witnessed bids for 75,831 shares out of the 1,79,856 shares on offer.

The Cello World IPO, structured as a complete offer for sale (OFS), involves the sale of INR 5 face value shares, amounting to INR 1,900 crore, by the company’s promoters and other shareholders. Additionally, the offering includes a reservation of up to INR 10 crore for eligible employees.

The expected listing price for Cello World shares stands at INR 783 apiece, taking into account the upper end of the IPO price range. This projection considers the current premium in the grey market, estimated to be around INR 135.

Cello World, a company primarily engaged in stationery, writing instruments, molded furniture, consumer housewares, and related products, was originally founded by the late Ghisulal Dhanraj Rathod. Presently, it is led by the current promoters, Pradeep Ghisulal Rathod and Pankaj Ghisulal Rathod.

The book-running lead managers for the Cello World Limited IPO include Kotak Mahindra Capital Company Limited, ICICI Securities Limited, IIFL Securities Ltd, JM Financial Limited, and Motilal Oswal Investment Advisors Limited, with the issuance being administered by Link Intime India Private Ltd.