Cello World IPO Soars with 28% Premium as Shares Debut at ₹829 on NSE

Mumbai, India: Cello World, a leading name in the stationery, furniture, and housewares industry, made a remarkable debut on the National Stock Exchange (NSE) today, as its shares were listed at an impressive premium of 27.9%. The stock opened at ₹829 per share, a significant increase from its issue price of ₹648. The listing on the Bombay Stock Exchange (BSE) was equally impressive, with the Cello World share price starting at ₹831.

The Cello World IPO had opened for subscription on Monday, October 30, and concluded on Wednesday, November 1, creating significant buzz in the market.

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Cello World Subscription Status

The Cello World IPO witnessed overwhelming demand from investors, with the subscription rate reaching 38.90 times the offered shares. Non-Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs) played a pivotal role in this robust subscription. At a price band of ₹617-648, the IPO garnered an astonishing 85,83,10,665 bids against the offered 2,20,61,947 equity shares, as reported by the stock exchanges.

The subscription rate for retail investors was 3.06 times, while the QIBs and NIIs sections saw staggering subscription rates of 108.57 times and 24.42 times, respectively. Even the employee portion of the offering was subscribed 2.60 times.

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Cello World IPO Details

Cello World’s initial public offering was a complete offer for sale (OFS), where the promoters and other shareholders collectively sold shares with a face value of ₹5, amounting to ₹1,900 crore. The offering also included a reserved portion of up to ₹10 crore for eligible employees.

Promoter Pradeep Ghisulal Rathod led the way by offloading ₹300 crore worth of shares, followed by ₹736 crore by Pankaj Ghisulal Rathod, ₹464 crore by Gaurav Pradeep Rathod, ₹200 crore by Sangeeta Pradeep Rathod, and ₹100 crore each by Babita Pankaj Rathod and Ruchi Gaurav Rathod.

The book running lead managers for the Cello World Limited IPO included Kotak Mahindra Capital Company Limited, ICICI Securities Limited, IIFL Securities Ltd, JM Financial Limited, and Motilal Oswal Investment Advisors Limited. Link Intime India Private Ltd served as the registrar of the issuance.

Cello World, originally founded by the late Ghisulal Dhanraj Rathod, has become a well-known name in three core categories: stationery and writing instruments, molded furniture, consumer housewares, and associated goods.

Cello World IPO Grey Market Premium

The GMP for Cello World’s IPO on the day of its listing was reported at +160, indicating that shares were trading at a premium of ₹160 in the unofficial grey market. 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 was suggested to be ₹808 apiece. This figure represents a substantial increase of 24.69% over the IPO price of ₹648.

It’s important to note that the “grey market premium” reflects investors’ willingness to pay more than the issue price for shares in the secondary market.

Investors and market participants are encouraged to consult certified experts and conduct thorough research before making any investment decisions.

Disclaimer: The opinions and recommendations expressed in this article belong to individual analysts and do not necessarily represent the views of Stockesta. Investors are advised to seek advice from certified experts before making investment choices.

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