Household Consumer Giant Cello World Files DRHP for Rs 1,750-Crore IPO

15 Aug 2023 , 12:40 PM

Cello World Ltd., a prominent player in the household consumer products sector, has submitted draft documents to the Securities and Exchange Board of India (SEBI) outlining its plans to raise Rs 1,750 crore through a public offering.

The IPO will exclusively comprise an offer-for-sale. The breakdown includes up to Rs 300 crore by Pradeep Ghisulal Rathod, up to Rs 670 crore by Pankaj Ghisulal Rathod, up to Rs 380 crore by Gaurav Pradeep Rathod, up to Rs 200 crore by Sangeeta Pradeep Rathod, and up to Rs 100 crore each by Babita Pankaj Rathod and Ruchi Gaurav Rathod.

Among the major shareholders, Gaurav Pradeep holds a 25.73% stake, Pankaj Ghisulal owns 16.24%, and Pradeep Ghisulal holds a 12.86% stake in the company.

Based in Mumbai, the company competes with renowned brands like Milton, La Opala, and Borosil. It enjoys support from ICICI Venture, the alternative investment arm of ICICI Bank.

As of March 2023, the company offers a comprehensive range of 15,841 stock keeping units (SKUs) spanning various product categories. It possesses and operates 13 manufacturing facilities situated across five locations in India. These facilities collectively boast an annual production capacity of 57.77 million units for consumer houseware products, 15,000 tonnes of opalware and glassware, 650.00 million units of writing instruments and stationery products, and 12.80 million units of moulded furniture and related items.

In the fiscal year 2022-2023 (FY23), the company achieved a revenue of Rs 1,796.70 crore, exhibiting growth from Rs 1,359.18 crore in the previous year. Simultaneously, its net profit increased to Rs 285.07 crore compared to Rs 219.52 crore in the preceding year. The EBITDA margin for the year experienced a decrease to 24.34% from 25.71% in the previous year. Notably, the company’s net debt decreased to Rs 304.49 crore during the year, down from Rs 426.64 crore in the previous year.

Kotak Mahindra Capital, ICICI Securities, JM Financials, Motilal Oswal Securities, and IIFL Capital Services have been appointed as the lead managers for the IPO.