Cello World’s IPO Receives 38% Subscription on Day One
The initial public offer (IPO) of consumer goods company Cello World has garnered a subscription of 38% on the first day of its issue. The non-institutional investor (NII) portion was nearly fully subscribed, while the retail portion saw a 35% subscription by the end of Monday.
The IPO, which opened on October 30 and will close on November 1, has a price band of ₹617 to ₹648. Investors can bid for a minimum of 23 shares and in multiples thereof. The company aims to raise up to ₹1,900 crore through the public issue.
Prior to the IPO, Cello World raised ₹567 crore from anchor investors on Friday. However, it is important to note that the IPO is a complete offer for sale, meaning no proceeds from it will go to the company.
According to data from the BSE, the IPO received a subscription of 0.02 times from qualified institutional buyers, 0.94 times from non-institutional investors, and 0.35 times from retail investors. The total subscription stood at 0.38 times.
Cello World is known for manufacturing, distributing, and selling a wide range of consumer goods, including drinkware, insulated ware, dinnerware, serveware, and glassware. It also offers products in categories such as cleaning supplies, stationery, small kitchen appliances, moulded furniture, and air coolers.
Analysts believe that the company holds a dominant market position due to its extensive product range and distribution advantage, allowing retailers to fulfill diverse customer demands through a single brand. Despite this advantage, the company faces risks related to fluctuating raw material prices and supply chain issues. Furthermore, it does not own the trademarks for key brands, which leaves it vulnerable to competitors using similar brand names.
Research reports from BP Equities and Geojit highlight the positive growth prospects for the branded consumerware market in India, contributing to Cello World’s long-term potential. However, while Choice Broking acknowledges the company’s strong market position, it suggests caution due to the highly priced nature of the IPO.
The IPO of Cello World has gained attention in the market, and experts continue to monitor its performance. For more information, visit the source links below:
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