The initial public offering (IPO) of Cello World, a prominent household products and stationery manufacturer, saw a subscription rate of 38% on the first day of the subscription process, which commenced on Monday. Notably, the IPO attracted bids for 82,88,878 shares against the total of 2,20,61,947 shares on offer, as reported by NSE data. Non-institutional investors displayed substantial interest, subscribing to 94% of their allotted quota, while Retail Individual Investors (RIIs) contributed to a 35% subscription rate. In contrast, the portion reserved for Qualified Institutional Buyers (QIBs) witnessed a modest 2% subscription.
It’s important to note that the IPO of Cello World is entirely an Offer For Sale (OFS), with promoters and other selling shareholders looking to raise Rs 1,900 crore. The company successfully collected Rs 567 crore from anchor investors on Friday, further reflecting the positive reception of the offering.
The public issue, featuring a price range of Rs 617 to Rs 648 per share, is scheduled to conclude on November 1, providing investors with the opportunity to participate in the growth of Mumbai-based Cello World. The company boasts a diverse product portfolio spanning three essential categories: consumer houseware, writing instruments and stationery, as well as molded furniture and related products. In 2017, Cello World ventured into the glassware and opal ware business under the renowned ‘Cello’ brand.
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To manage the offer effectively, Cello World has enlisted the services of several well-established financial institutions, including Kotak Mahindra Capital Company, ICICI Securities, IIFL Securities, JM Financial, and Motilal Oswal Investment Advisors. After the IPO, the company’s shares are intended to be listed on both the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange), opening new avenues for investors to engage with this dynamic player in the consumer products industry.
