The initial public offering (IPO) of Cello World, a well-known brand in the stationery, writing instruments, and household goods sector, kicked off on October 30, and its subscription status for the first day has reached 31%. The subscription period will extend until November 1, giving investors an opportunity to acquire shares in the company.
Cello World has set the IPO price band at ₹617 to ₹648 per equity share, each having a face value of ₹5. The IPO is structured as an offer for sale (OFS), where existing shareholders, including promoters, will sell shares valued at ₹5 each, amounting to a total of ₹1,900 crore. A reservation of ₹10 crore has been allocated for eligible employees, with the remaining shares open for public subscription.
For the public, the IPO comprises not more than 50% of the shares for Qualified Institutional Buyers (QIBs), no less than 15% for Non-Institutional Investors (NIIs), and at least 35% for Retail Investors. Additionally, eligible employees can avail of a discount of ₹61 per equity share.
On the first day of the subscription, the retail investors’ portion of the Cello IPO was subscribed 32%, while the NII portion reached 72%. Qualified Institutional Buyers (QIBs) contributed 2%, and the employee portion saw a subscription of 40%. In total, the IPO garnered bids for 68,94,250 shares against the 2,20,61,947 shares available for subscription.
The retail investors’ portion received bids for 33,90,683 shares, with 1,07,21,232 shares on offer. Non-institutional investors bid for 33,22,235 shares against the 45,94,814 shares allocated for this segment. Qualified Institutional Buyers (QIBs) requested 1,09,940 shares of the 65,66,045 shares available, while the employee portion garnered bids for 71,392 shares out of 1,79,856 available.
Cello World Limited’s book running lead managers for the IPO include Kotak Mahindra Capital Company Limited, ICICI Securities Limited, IIFL Securities Ltd, JM Financial Limited, and Motilal Oswal Investment Advisors Limited. The registrar of the issuance is Link Intime India Private Ltd.
Cello World, founded by the late Ghisulal Dhanraj Rathod, operates in three primary categories: stationery and writing instruments, moulded furniture, and consumer housewares, as well as related products. The grey market premium (GMP) for Cello World IPO has been reported at +135. This reflects that Cello World shares were trading at a premium of ₹135 in the grey market, indicating strong demand among investors.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price for Cello World shares is projected at ₹783 apiece, representing a 20.83% increase over the IPO price of ₹648. The “grey market premium” reflects investor willingness to pay more than the issue price, suggesting positive market sentiment for Cello World share
