What does GMP and subscription status indicate concerning listing for Cello World IPO? Look this up

 What does GMP and subscription status indicate concerning listing for Cello World IPO? Look this up

Cello World IPO: Investor interest for Cello World Ltd.'s first public offering (IPO) was robust. Consumer goods firm Cello World specializes in three product categories: molded furniture, consumer housewares, writing tools and stationery, and associated items. 

The public subscription period for the Cello World IPO began on October 30 and ended on November 1. On November 3, the business completed the allocation of IPO shares.

On Monday, November 6, 2023, Cello World's equity shares will go on sale on the BSE and NSE.

As per the BSE announcement, "Trading Members of the Exchange have been advised that the equity shares of Cello World Limited will begin to be listed and admitted to operations on the Exchange in the list of 'B' Group of Securities, commencing from Monday, November 6, 2023."

Since the date of the Cello World IPO listing has been set, let's examine what the most recent GMP subscription status indicates:

The grey market premium, or GMP, for the Cello World IPO is now ₹160 per share. This suggests that, according to market watchers, the price of Cello World shares was selling at a premium of ₹160 on the black market.

Taking into account the higher end of the IPO price range and the existing premium in the secondary market, the expected listing price for Cello World shares is ₹808 per share, which represents a 24.69% increase over the ₹648 IPO price.

Status of Cello World IPO Subscription

38.90 times have been subscribed to the Cello World IPO during the bidding process. According to statistics available on the NSE, the public offering got bids for nearly 85.83 crore equity shares compared to 2.20 crore shares on the offer.

The Qualified Institutional Buyers (QIB) category received 108.57 subscriptions to the IPO, while the Non-Institutional Investors (NII) category received 24.42 subscriptions. The retail category received 3.06 subscriptions.

Details about Cello World's IPO

The IPO for Cello World began on October 30 and ran until November 1. Through the public offering, which consisted only of an offer for sale (OFS) of 2.93 crore equity shares, Cello World was able to raise ₹1,900 crore.

The pricing range for the Cello World IPO was ₹617 to ₹648 per share, with a minimum lot size requirement of 23 equity shares for each application. 

A ₹61 reduction to the issue price was provided to workers who had up to 170,357 shares reserved for them by the corporation.

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