In an impressive market debut, Cello World listed at a substantial 28 percent premium to its issue price on November 6, thanks to robust subscription numbers and positive market sentiment. The stock commenced trading at Rs 829 on the NSE and Rs 831 on the BSE, while its issue price had been Rs 648.
Cello World’s public offering garnered an exceptional subscription rate of 38.9 times. Qualified institutional buyers (QIBs) subscribed a remarkable 108.57 times their allocated quota, while high net worth individuals (HNIs) displayed strong interest with a subscription rate of 24.42 times. Retail investors also participated actively, with a subscription rate of 3.06 times.
Market analysts attributed the strong investor interest to the company’s robust financials, debt-free status, and the endorsement of prominent anchor investors like Nomura and Morgan Stanley.
Based in Mumbai, Cello World successfully raised Rs 1,900 crore through its maiden public offering, which solely comprised an offer-for-sale (OFS) by the promoters. Since the offering did not include a fresh issue component, all proceeds, excluding issue expenses, went to the promoters.
Cello World holds a prominent position in various consumer product categories, including houseware, writing instruments, stationery, molded furniture, and consumer glassware. As of June 2023, the company offered an extensive range of 15,891 stock-keeping units (SKUs) across its product categories and operated from 13 manufacturing facilities located across five different sites. Additionally, the company is in the process of establishing a glassware manufacturing facility in Rajasthan.
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