Cello World Files IPO DRPH for Rs. 1750 Crore
In a significant move, renowned pen manufacturer Cello World Ltd has taken a strategic step towards growth by submitting its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for its forthcoming initial public offering (IPO). This marks a noteworthy development in the company’s trajectory, as it aims to raise capital through this strategic move. The IPO, which boasts a face value of ₹5, is structured as a complete offer for sale (OFS) of up to ₹1,750 crore.
This groundbreaking offer incorporates a special allocation of up to ₹10 crore for subscription by eligible employees, highlighting the company’s commitment to its workforce.
The IPO composition includes allocations of up to ₹300 crore by promoter Pradeep Ghisulal Rathod and up to ₹670 crore by co-promoter Pankaj Ghisulal Rathod. The financial arrangement also involves contributions of up to ₹380 crore by Gaurav Pradeep Rathod, up to ₹200 crore by Sangeeta Pradeep Rathod, up to ₹100 crore by Babita Pankaj Rathod, and up to ₹100 crore by Ruchi Gaurav Rathod.
The IPO is strategically structured using the book-building process, where a proportionate basis is maintained: no more than 50% of the offering will be available for allocation to qualified institutional buyers, at least 15% for non-institutional bidders, and a minimum of 35% for retail individual bidders.
Cello World has a profound history, being established by the late Ghisulal Dhanraj Rathod, who was a prominent figure in the industry. His legacy is carried forward by his successors, Pradeep Ghisulal Rathod and Pankaj Ghisulal Rathod.
By March 31, 2023, the company had expanded its product offerings significantly, encompassing a diverse range of 15,841 stock-keeping units spanning various categories. In 2017, Cello World made a strategic foray into the glassware and opal ware sector under its esteemed “Cello” brand. Its product portfolio remains diverse, covering three key categories: consumer houseware, writing instruments and stationery, as well as molded furniture and related items.
The Indian market features other players with analogous product lines, including Borosil Limited, Kokuyo Camlin Limited, La Opala RG Limited, Stove Kraft Limited, TTK Prestige Limited, Linc Limited, and Hawkins Cookers Limited.
In the fiscal year 2023, Cello World achieved remarkable financial performance, with consolidated revenue from operations surging by an impressive 32.19%, reaching ₹1796.69 crore as compared to ₹1359.18 crore in the preceding year. Furthermore, the net profit exhibited a substantial growth of 29.86%, rising from ₹219.52 crore in fiscal 2022 to ₹285 crore in fiscal 2023.
The IPO’s book-running lead managers are well-established financial institutions, including Kotak Mahindra Capital, ICICI Securities Limited, IIFL Securities Limited, JM Financial Limited, and Motilal Oswal Investment Advisors Limited. Additionally, Link Intime India Private Limited has been appointed as the registrar for the offering. The equity shares are slated for listing on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), positioning Cello World for an exciting phase of growth and expansion.
About Cello World:
Cello World Limited, established on July 25, 2018, operates as an unlisted publicly traded corporation. It holds the status of a public limited company and is situated in Daman, Daman and Diu. The company possesses an authorized share capital amounting to INR 125.00 crore, while its total paid-up capital stands at INR 111.88 crore.
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