November 1, 023
New Delhi, India
Cello World IPO Attracts Strong Interest, Closes with 1.44x Subscription
The Cello World Initial Public Offering (IPO) concluded its subscription phase with significant investor interest, culminating in a subscription of 1.44 times by the end of the second day. The IPO, valued at ₹1,900 crores, garnered substantial attention across different investor segments.
Robust Subscription Details
The IPO, priced between ₹617 to ₹648 per share, saw bids totaling 3.17 shares against the total offering of 2.21 crore shares. Notably, Non-Institutional Investors (NIIs) played a pivotal role in this robust subscription, oversubscribing their category by 4.36 times, showcasing their confidence and strong interest in Cello World.
Diverse Investor Response
While the NII segment led with robust participation, other investor categories showed varied levels of interest. Retail Investors exhibited a subscription rate of 1.05 times, while the Qualified Institutional Buyers (QIBs) segment was subscribed at 0.05 times. The Employee Portion received bids of 1.26 times, offering eligible employees shares at a discounted rate of ₹61 per share.
Offer Structure and Investor Allotment
The IPO, structured as an Offer for Sale (OFS) worth ₹1,900 crores, involved various promoters and selling shareholders reducing their stakes. Anchor investors contributed ₹567 crores, with prominent names such as ICICI Prudential, Motilal Oswal, and Goldman Sachs participating in the offer.
Future Listing and IPO Management
Kotak Mahindra Capital Company Limited, ICICI Securities Limited, IIFL Securities Limited, JM Financial Limited, and Motilal Oswal Investment Advisors Limited played pivotal roles as book running lead managers. The equity shares are slated for listing on both BSE and NSE post the subscription closure.
Cello World: Industry Overview
Cello World operates across various product categories, including consumer houseware, writing instruments and stationery, and moulded furniture. The IPO was exclusively an Offer for Sale, with promoters and selling shareholders reducing their stakes in the company.
The substantial interest from non-institutional investors, alongside varied responses from other categories, underlines the high anticipation surrounding Cello World’s public issue. The closure of the subscription phase hints at potential market enthusiasm and investor focus on its upcoming listing.
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