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Shares of Cello World Ltd witnessed a stellar entry on the BSE on Monday, commencing at Rs 831, which is a 28% surge from its issue price of Rs 648. Similarly, on the NSE, it opened at Rs 829, up by 28% from the issue price.
The initial performance of Cello Price on the stock exchange was on par with or surpassed expectations, as indicated by the strong grey market premium. Before it went public, Cello World saw its shares fetch a premium of Rs 160 each in the grey market, hinting at a 25% jump from the issue price. This premium had shown consistency following the conclusion of the issue.
The company garnered Rs 1,900 crore through its initial public offering (IPO), which was solely an offer-for-sale (OFS) by its promoters and other shareholders, amounting to 2.93 crore shares. The share sale was priced between Rs 617 and Rs 648, with the minimum subscription set at 23 shares, from October 30 to November 1.
The subscription period, which lasted three days, saw the issue being oversubscribed by 38.9 times. Institutional buyers showed overwhelming interest with subscriptions 108.57 times the quota, whereas non-institutional investors participated with 24.42 times the subscription. Retail individual investors and employees also showed keen interest, subscribing 3.06 and 2.60 times the slots reserved for them, respectively.
With a strong presence across India, Cello World is a leading name in the consumer goods sector, with business interests spanning writing instruments and stationery, molded furniture, and consumer housewares. The company boasts over six decades of experience in the consumer goods space and operates 13 manufacturing units across five locations within India.
The IPO was managed by financial giants including Kotak Mahindra Capital Company, ICICI Securities, IIFL Securities, JM Financial, and Motilal Oswal Investment Advisors. Link Intime India served as the registrar for the offering.
