Cellecor Gadgets, a company engaged in the procurement, branding, and distribution of various electronic devices, made a quiet debut on the NSE SME platform on Thursday. The shares were listed at ₹92 apiece, identical to the issue price. Shortly after the listing, the shares hit an intraday high of ₹96.60 and a low of ₹88.15 each.
The company's initial public offering (IPO) was open for subscription from September 15 to September 20. It comprised a fresh issue of 55,18,800 equity shares aggregating up to ₹50.77 crore ($680 million). The offer was entirely new, with no offer-for-sale component involved.
The IPO saw significant investor interest, with a subscription rate of 116.33 times and the retail portion booked 124.08 times. The grey market premium (GMP) for Cellecor Gadgets shares was at ₹50, indicating investors' readiness to pay more than the issue price. This implied a listing price of ₹142 per share, which is 54.35% higher than the issue price of ₹92.
Cellecor Gadgets raised ₹14.46 crore ($193 million) from anchor investors ahead of the IPO opening. After the IPO, promoter's shareholding in the company reduced from 69.95 percent to 51.54 percent, while public shareholding increased to 48.46 percent from 30.05 percent.
The company reported a net profit of ₹7.97 crore ($10 million) for the fiscal year ended March 2023, up from ₹2.14 crore ($285 thousand) a year earlier. Revenue from operations jumped to ₹264.35 crore ($35 million) from ₹121.3 crore ($16 million) during the same period.
Narnolia Financial Services Ltd was the book-running lead manager of the IPO, while Skyline Financial Services Private Ltd served as the IPO registrar. The market makers were SS Corporate Securities and Kantilal Chhaganlal Securities. Tano Investment Opportunities Fund managed by Tano Capital LLC is the largest shareholder in the company with 18.64 percent stake after promoter Ravi Agarwal.
Cellecor Gadgets plans to use the IPO proceeds for a working capital requirement amounting to ₹40 crore ($5 million) and the remaining for general corporate purposes. The company has a network of over 1,200 service centers, more than 800 distributors, and its products are available in over 24,000 retail stores.
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