Final day of Cello World IPO: 13.89 times subscription supported by HNIs and QIB

 Final day of Cello World IPO: 13.89 times subscription supported by HNIs and QIB

Cello World IPO: In accordance with the IPO timetable, its shares will be accessible for trading on the exchanges starting on November 9, the T+6 timeline.

On November 1, the last day of subscription, the Cello World IPO received bids for 30.63 crore equity shares, or 13.89 times the IPO size of 2.2 crore equity shares. This indicates that the investment community has tremendous interest for the offering.

The issue of purchasing 32.55 times the allocated quota was supported by qualified institutional purchasers, who have a 50% reservation in the offer. Meanwhile, the 15% of the net offer that is reserved for high net worth people was subscribed 15.26 times.

Employees purchased 2.02 times their quota, while retail investors bid 2.06 times the reserved part, or 35% of the net issuance.

Employees of the consumer goods firm would get shares worth Rs 10 crore, discounted by Rs 61 a share from the final offer price. The net offer is the problem, not the employee component.

The initial public offering (IPO), which began on October 30, has a price range of Rs 617–648 per share.

The Mumbai-based company wants to raise Rs 1,900 crore via its first public offering, which would only include an offer for sale (OFS) made by the Rathod family, who are the promoters.

Therefore, the promoters will get the final issue proceeds, less IPO expenditures.

A major participant in the Indian consumer goods industry, Cello World, announced on November 27 that it had received Rs 567 crore from anchor investors. Investors in the company's anchor book included Morgan Stanley, Nomura, Goldman Sachs, HSBC, Florida Retirement System, Aditya Birla Sun Life Trustee, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Tata Mutual Fund, and HDFC Life Insurance Company.

By November 6, the company, in collaboration with the NSE, will finalize the terms of the IPO share allotment. By November 8, the equity shares will be transferred to the demat accounts of the investors who were successful.

As per the IPO timetable, Cello World shares will be available for trading on the bourses starting on November 9, the T+6 timeline.

As IPO shares traded at a 20 percent premium over the upper price band, analysts who requested anonymity said that investors in the grey market appeared to be maintaining their optimism about the company, which is present in the consumer houseware, writing instruments and stationery, moulded furniture and related products, and consumer glassware categories.

An unauthorized marketplace for trading IPO shares prior to listing is the grey market. Participants often look to the grey market premium to determine the issue's potential listing price.