Cello World IPO opens for subscription: Everything to know
Cello World, a prominent manufacturer of household items and stationery, has opened its initial public offering (IPO) for subscription today. The subscription window will close on November 1. The company successfully raised Rs. 567 crore from anchor investors on October 27. Cello World primarily deals in three sectors: stationery and writing instruments, molded furniture, consumer housewares and related products.
Price band and lot size details
The IPO's price range is set at Rs. 617-648 per equity share with a face value of Rs. 5. The lot size for the IPO consists of 23 equity shares and multiples of 23 shares thereafter. The issue is a complete offer for sale (OFS) of Rs. 1,900 crore by promoters and other selling shareholders, without any new issuance of equity shares.
Reservation and allotment details
The Cello World IPO has allocated no more than 50% of shares for Qualified Institutional Buyers (QIB), no less than 15% for Non-Institutional Investors (NII), and no less than 35% for Retail Investors. Eligible employees bidding in the employee reserve portion will receive a discount of Rs. 61 per equity share. Tentatively, share allotment will be finalized on November 6, with refunds initiated on November 7 and shares credited to allottees' demat accounts on November 8.
Listing date and lead managers
Cello World IPO shares are expected to be listed on both BSE and NSE on November 9. The 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 for the issuance is Link Intime India Private Ltd.
Key risks and grey market premium
According to the company's Red Herring Prospectus (RHP), the two main risks are fluctuations in raw material costs, specifically plastic granules and plastic polymers, and disruptions in their supply. The company's ability to sell and distribute its products relies on its distribution network in India and overseas. Any disruption could adversely affect its operations and financial position. The grey market premium for Cello World IPO is around Rs. 120 as of October 30, as per investorgain.com.
