Cello World Limited’s entry into the public market has been marked by considerable investor interest. As the company known for its consumer housewares prepared to list on the stock exchange, potential shareholders were provided with an opportunity to participate in the brand’s future.
The financial community kept a close eye on the company as it approached its IPO date, evaluating the possible impact on both the company’s future and the broader market. The IPO was intended not only to raise funds but also to measure investor confidence in Cello World’s business model and growth potential.
As Cello World takes this important move, the market will be watching to see how this well-established business will use the infusion of public capital to reach new heights.
Listing Date and Price Band for the IPO
The stage was meticulously set for Cello World’s shares to make their debut on the stock exchange on November 9, 2023. The company opened its doors to public investors and offered a total of 29,337,023 shares to the public.
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With a price band fixed between ₹617 to ₹648 per share, which was considered as a reasonable entry point for common investors. It gave people an opportunity to invest in a company whose products are found in countless households throughout India. Retail investors were expected to bid for a minimum lot size of 23 shares, making the entry point for investment ₹14,904 at the lower end of the price band.
Investor Options and Share Allocations
The IPO offered a wide range of investors, including Retail Individual Investors (RIIs), Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Anchor Investors. Each category was designed to take into account the investors’ various capacities and interests.
For example, RIIs, who normally bring in a large number of applications, were given a large share percentage i.e. 34.80%., ensuring their capacity to participate in the IPO. QIBs were also given a bigger share,19.88% because of their significant financial resources, recognising their influence and investment ability.
In contrast, NIIs and Anchor Investors served a more specialised investor class, with Anchor Investors frequently setting the tone for the IPO with their early commitments. 29.83% were allocated to the Anchor investors whereas 14.91% were for NILs. However, only 0.58% was set aside for employees.
Cello World GMP
The IPO of Cello World also shows a smart approach to fund utilisation and future growth planning. The company positioned itself to take advantage of the funds for expansion and market consolidation by intending to raise over 2,000 crore.
The GMP for Cello World IPO was reported to be ₹160, suggesting the shares were trading at a big premium in the grey market before the listing. Based on the upper price band of ₹648 and the reported GMP, the estimated listing price was projected to be around ₹808, translating to an expected gain of approximately 24.69% per share.
On the day of listing, Cello World shares debuted on the National Stock Exchange (NSE) at ₹829, which is a premium of approximately 28% over the issue price of ₹648. This premium was a bit higher on the Bombay Stock Exchange (BSE) at ₹831. There have been different GMP figures reported, ranging from ₹90 to ₹160, reflecting varying market sentiments during the IPO phase.
Oversubscription
On the final day of bidding, the IPO was heavily oversubscribed, with bids for 85,83,10,665 shares against the 2,20,61,947 shares on offer, resulting in a subscription rate of 38.90 times. This substantial oversubscription highlights the strong market demand for the shares of Cello World