Cello World IPO subscriptions now open: GMP, issue specifics, price range, dangers, and ten essentials to know before making an investment

 Cello World IPO subscriptions now open: GMP, issue specifics, price range, dangers, and ten essentials to know before making an investment

The subscription period for the Cello World IPO began today, Monday, October 30, and will end on Wednesday, November 1. On Friday, October 27, the Cello World IPO garnered ₹567 crore from anchor investors.

Cello World mainly specializes in three categories: consumer housewares, connected items, molded furniture, and stationery and writing equipment. 

The late Ghisulal Dhanraj Rathod, an advertiser in the past and the father of two modern promoters, Pradeep and Pankaj, established Cello.

The floor price for the Cello World IPO is equal to 123.40 times the equity shares' face value, while the cap price is equal to 129.60 times that amount. For the fiscal year 2023, the price/earnings ratio at the floor price is 46.85 times and at the headgear price is 49.20 times, based on diluted EPS.

Borosil Ltd (P/E of 50.59), Kokuyo Camlin Ltd (P/E of 57.97), La Opala RG Ltd (P/E of 40.81), Stove Kraft Ltd (P/E of 51.49), TTK Prestige Ltd (P/E of 43.78), Linc Ltd (P/E of 33.39), as well as Hawkins Cookers Ltd (P/E of 40.23) are the similar listed peers of the firm.

Consolidated operating revenue for FY23 grew by almost 32% year over year to ₹1,796.69 crore, while net profit climbed by 29.86% to ₹285 crore.

These are the ten most important details about the Cello World IPO;

Day 1 subscription status for Cello World IPO: As of 11:25 IST, 5% of the shares have been subscribed for the Cello World IPO. The part of the Cello World IPO reserved for regular investors was subscribed at 8%, while the amount reserved for qualified institutional buyers (QIBs) was subscribed at 6%. 

Price range for Cello World IPO: The price range for each equity share with a face value of ₹5 has been set at ₹617 to ₹648.

The size of the Cello World IPO lot is 23 equity shares, and it will be further divided into multiples of 23 equity shares.

Reservations for the Cello World IPO: A minimum of 35% of the offer is set aside for retail investors, a minimum of 15% is set aside for non-institutional investors (NII), and a maximum of 50% of the shares in the public offering are reserved for qualified institutional buyers (QIB). When bidding in the employee reserve part, qualifying workers will get a discount of ₹61 per equity share.

Details of Cello World IPO: The supporters and other shareholders will sell shares of ₹5 face value, for a total of ₹1,900 crore, in this full offer for sale (OFS). A reserve of up to ₹10 crore is included in the offer for workers who qualify.

The founder, Pradeep Ghisulal Rathod, will dispose shares valued at ₹300 crore. Pankaj Ghisulal Rathod, Gaurav Pradeep Rathod, Sangeeta Pradeep Rathod, Babita Pankaj Rathod, as well as Ruchi Gaurav Rathod will each offload shares valued at ₹736 crore, ₹200 crore, and ₹100 crore.

Details of the Cello World IPO allocation and listing date: Cello World IPO's tentative allocation basis for shares is set to be finalized on Monday, November 6. The business will then begin processing refunds on Tuesday, November 7, and on Wednesday, November 8, the shares will be credited to the allottees' demat accounts. On Thursday, November 9, shares of the Cello World IPO are probably going to go live on the BSE and NSE. In the unlikely event that the business chooses to use the T+3 standard, the dates will be advanced.

Lead Manager as well as Registrar of Baccarat World IPO: Kotak Mahindra Capital Company Limited, ICICI Securities Limited, IIFL Securities Ltd, JM Financial Limited, as well as Motilal Oswal Investment Advisors Limited are the book running lead managers of the Cello World Limited IPO. Link Intime India Private Ltd. is the registrar of the issue.

Important risks associated with the Cello World IPO include fluctuations in the price of raw materials, particularly plastic granules and polymers, and supply disruptions. These risks could have a detrimental effect on the company's operations, finances, business, and cash flows. These are indicated by the RHP of the company.

The company's distribution network, both domestically and internationally, is essential to its capacity to sell and distribute its goods; any interruption to this network might have a detrimental effect on the company's operations, cash flows, and financial standing.

Cello World IPO GMP as of right now: The grey market premium, or GMP, is +120. According to investorgain.com, this shows that the price of Cello World shares were trading on Monday at a premium of ₹120 on the grey market.

The expected listing price of Cello World shares was indicated at ₹768 each, which is 18.52% more than the IPO price of ₹648. This is because it takes into account the top end of the IPO pricing range and the present premium on the grey market.

A "grey market premium" denotes the willingness of investors to part with more money than the issue price.

Review of the Cello World IPO: According to Choice Equity Broking, the company is requesting a TTM P/E multiple at a higher price range of 48.8x, which is much higher than the peer average of 38.6x, given its TTM profits per share of Rs. 13.3. As thus, the problem is overpriced.

The company's broad distribution network, extensive product line, and well-known brands have allowed it to hold a leading position in the domestic consumerware industry. Its entry into the glassware business would improve its standing in the industry. The industry is experiencing growth tailwinds, and CWL is positioned to take advantage of them. However, we are ranking the issue as "Subscribe with Caution" owing to its high pricing," the brokerage said.