Cello World IPO: Cello IPO sees tepid response on day 1, subscribed 38%

Cello World IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors. A discount of ₹61 per equity share is being offered to eligible employees bidding in the employee reserve portion.

Also Read: Cello World IPO open for subscription: GMP, issue details, price band, risks, 10 key things to know before investing

On day 1, Cello IPO retail investors portion was subscribed 35%, NII portion was subscribed 94%, and Qualified Institutional Buyers (QIB) portion were booked 2%, and employee portion was subscribed 42%. 

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Cello IPO subscription status

Cello World IPO has received bids for 83,01,022 shares against 2,20,61,947 shares on offer, according to data from the BSE.

Cello IPO retail investors’ portion received bids for 37,81,246 shares against 1,07,21,232 shares on offer for this segment.

Also Read: Cello World IPO: GMP, subscription status, review, other details. Apply or not?

Cello IPO’s non-institutional investors’ portion received bids for 43,27,105 shares against 45,94,814 on offer for this segment.

Cello World IPO Qualified Institutional Buyers (QIBs) portion received bids for 1,16,840 shares against 65,66,045 shares on offer for this segment.

Cello World IPO’s employee portion received bids for 75,831 shares against 1,79,856 on offer for this segment.

Cello World IPO details

Cello World IPO is a complete offer for sale (OFS), where promoters and other shareholders will sell shares of ₹5 face value totalling ₹1,900 crore. The offer includes a reservation of up to ₹10 crore for subscription by eligible employees.

The issue will see promoter Pradeep Ghisulal Rathod offload ₹300 crore worth of shares, ₹736 crore by Pankaj Ghisulal Rathod, ₹464 crore by Gaurav Pradeep Rathod, ₹200 crore by Sangeeta Pradeep Rathod, ₹100 crore by both Babita Pankaj Rathod and Ruchi Gaurav Rathod.

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

Cello was founded by the late Ghisulal Dhanraj Rathod, formerly promoter and father of two current promoters, Pradeep Ghisulal Rathod and Pankaj Ghisulal Rathod.

Cello World primarily deals in three categories: stationery and writing instruments, moulded furniture, consumer housewares, and associated goods.

Also Read: Cello World IPO opens on October 30, price band set at ₹617-648 per share

Cello World IPO GMP today

Cello World IPO GMP today or grey market premium is +135. This indicates Cello World share price were trading at a premium of ₹135 in the grey market on Monday, according to investorgain.com. In the morning, it was trading with a GMP of ₹120. 

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Cello World share price was indicated at ₹783 apiece, which is 20.83% higher than the IPO price of ₹648.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Also Read: Cello World IPO: Firm mobilises ₹567 crore from anchor investors ahead of issue

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 30 Oct 2023, 04:36 PM IST