Cello World IPO Records 1.44 Times Subscription: High Net-Worth Individuals Lead Investor Interest

31 Oct 2023 , 08:06 PM

Investor response to the Cello World IPO has been notable, as 3.16 crore equity shares were purchased against the offer size of 2.2 crore by the second day of bidding on October 31, resulting in a 1.44 times oversubscription.

High net-worth individuals have notably driven the IPO subscription, bidding 4.35 times their allocated quota. Retail investors also participated actively, securing 1.04 times their dedicated portion. Qualified institutional buyers subscribed to 5% of their set allocation, while employees bid 1.25 times their quota.

Cello World, based in Mumbai, has earmarked Rs 10 crore worth of shares for its employees, who will receive these shares at a discounted rate of Rs 61 each, compared to the final issue price. The net issue excludes the employee quota.

The offering designates 50% for qualified institutional buyers, 15% for high net-worth individuals, and 35% for retail investors, with a price band set between Rs 617-648 per share. The IPO aims to raise Rs 1,900 crore and comprises only an offer-for-sale by the Rathod family, implying that the company itself won’t generate any funds through this offer. The net issue proceeds, after issue expenses, will go entirely to the promoters.

Established in 2018, Cello World is a prominent player in India’s consumer-ware market, operating across various categories such as consumer houseware, writing instruments, stationery, moulded furniture, allied products, and consumer glassware.