Cello World, a prominent player in the consumer goods market, has announced the launch of its Initial Public Offering (IPO) today, Monday. The offering, which is scheduled to run from October 30 to November 1, aims to raise ₹1,900 crore through an offer for sale (OFS) of up to 2.93 crore shares. Shares have been priced in the range of ₹617-₹648.
A group of anchor investors including Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), Florida Retirement System, CLSA Global, and BNP Paribas (OTC:BNPQY) Arbitrage have already made a significant contribution towards the IPO. They have collectively invested ₹567 crore at a price of ₹648 per share.
The funds raised from the IPO will be utilized to establish a glass manufacturing unit in Rajasthan. The company plans to import machinery from Europe for this new venture. Cello World currently manages a diverse product portfolio with 15,841 Stock Keeping Units (SKUs).
In terms of financial performance, Cello World reported a net profit of ₹82.83 crore (INR100 crore = approx. USD12 million) on revenues of ₹479.88 crore for the period ending June 30, 2023. Market analysts from Reliance Securities, Choice Broking, Sushil Finance, StoxBox, and Mehta Equities have given 'subscribe' ratings to the issue.
Following the completion of the IPO process, the company’s shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). As part of its employee stock option plan (ESOP), Cello World is offering a discount of Rs 61 per share to eligible employees.
The IPO is being managed by Kotak Mahindra Capital Company among other financial institutions.
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