Cello World Shares Make Robust Debut, Open 28% Above Issue Price

6 Nov 2023 , 09:55 AM

Cello World shares made a robust debut on the bourses, opening with a substantial premium of 28%. On the NSE, the shares were listed at Rs 829, presenting a premium of 27.93% over the issue price of Rs 648. Similarly, on the BSE, the shares debuted at Rs 831, showcasing a premium of 28.24%.

The public issue of Cello World observed significant interest from investors, with a subscription rate of 38.9 times. Qualified institutional buyers (QIB) oversubscribed massively, reaching 108.57 times the allotted quota, while high net worth individuals (HNI) subscribed 24.42 times, and retail investors bid 3.06 times. The IPO, open from October 30 to November 1, had a price band set at Rs 617-648 per share.

This Mumbai-based firm successfully raised Rs 1,900 crore through its initial public offering, which solely comprised an offer-for-sale (OFS) by the promoters. As there was no fresh issue component, the entirety of the proceeds, excluding issue expenses, went to the promoters. However, the primary aim of the offering was to gain the advantages of having the equity shares listed on the stock exchanges.

Cello World maintains a strong presence across various consumer categories such as houseware, writing instruments and stationery, moulded furniture, and consumer glassware. With an extensive offering of 15,891 stock-keeping units (SKUs) within its product range as of June 2023, the company operates 13 manufacturing facilities across five locations and is in the process of establishing a glassware manufacturing facility in Rajasthan.