Last Updated on October 27, 2023 by BFSLTeam BFSLTeam
With a legacy of more than 50 years, Cello has become a common name in every Indian household. From houseware and stationery to furniture and glassware, Cello World Limited has a diverse portfolio and customer segmentation.
The company had received approval for its draft prospectus from SEBI and it has recently announced the launch date for its IPO. The IPO size has been increased from Rs. 1,750 crore to Rs. 1,900 crore to raise more funds via an pure Offer for Sale (OFS).
If you are planning to start your investment journey with IPOs, this blog is for you. With the company all set to launch Cello World Limited IPO on October 30, 2023, we have provided a detailed overview about the company and its upcoming IPO.
Also Read: Upcoming IPO’s
IPO Details
Cello World is soon to go public on October 30, 2023 with minimum lot size as 23 equity shares in one lot. The table below carries other relevant information about the upcoming Cello World IPO.
| IPO Opening Date | October 30, 2023, Monday |
| IPO Closing Date | November 1, 2023, Wednesday |
| Face Value | Rs. 5 per equity share |
| Lot Size | 23 shares |
| Price Band | Rs. 617 to Rs. 648 per share |
| Total IPO Size | 2,93,20,987 equity shares worth up to Rs. 1,900 crore |
| Offer for Sale | 2,93,20,987 equity shares worth up to Rs. 1,900 crore |
| Employee Discount | Rs. 61 per share |
| Employee Reservation | Shares worth Rs. 10 crore approximately |
| Listing Date | November 9, 2023, Thursday |
| Listing Type | Book Built issue |
| Listed on | BSE and NSE |
Also Read:Benefits of Investing in IPO
Table of Content
About the Company
Since its establishment in 1967, Cello has become a household name for offering its customers innovative products with superior quality at affordable prices. As per a report by Technopak, Cello World Limited is a leading consumer ware company in India that markets and sells stationary, writing instruments, consumer houseware products and allied product categories.
Under the leadership of promoters who hold an experience of six decades, this company emerged by closely studying and understanding the preferences of its consumers. Cello World Limited owns or leases and operates with the help of 13 manufacturing units across 5 locations in India. As per its DRHP, the firm is inaugurating a glassware manufacturing unit in Rajasthan to increase its production capacity.
As for product distribution, Cello World Limited has a robust pan-India distribution network. In the consumer houseware category alone, the company holds 678 distributors and 51,900 retailers across India. Its sales and distribution network is run by a team of 683 members as of FY2023 according to the DRHP.
The company also has well-equipped and trained field staff with a thorough enterprise resource planning system. This allows the company to predict production and optimise inventories.
To grow brand awareness, Cello World Limited uses diverse marketing and promotional strategies for its brands and sub-brands. The company has also developed a strong brand identity with ad campaigns. Some of them are, ″Cello- Rishta Zindagi bhar ka″, Don’t just write, glide″ and ″Hot chahiye toh Cello″.
The total income of Cello World Limited has increased from Rs. 10,594.84 million in FY21 to Rs. 18,134.35 million in FY23. This company’s total expenses also grew from Rs. 8,238.91 million in FY21 to Rs. 14,282.39 million in FY23.
IPO Tentative Timeline
The table below lists the tentative dates associated with Cello World IPO launch.
| Anchor Investor Allocation | October 27, 2023, Friday |
| IPO Opening Date | October 30, 2023, Monday |
| IPO Closing Date | November 1, 2023, Wednesday |
| Basis of Allotment | November 6, 2023, Monday |
| Initiation of Refunds | November 7, 2023, Tuesday |
| Credit of Shares to Demat Account | November 8, 2023, Wednesday |
| Listing Date | November 9, 2023, Thursday |
| Cut-off Time for UPI mandate | November 1, 2023, Wednesday, 5 pm |
IPO Lot Size
Investors can bid for minimum 23 shares in 1 lot and multiples of 23 while bidding for more lots. The table below highlights the minimum and maximum investment according to lot size for each investor type.
| Application | Lots | Shares | Amount |
| Retail (min) | 1 | 23 | Rs. 14,904 |
| Retail (max) | 13 | 299 | Rs. 1,93,752 |
| S-HNI (min) | 14 | 322 | Rs. 2,08,656 |
| S-HNI (max) | 67 | 1541 | Rs. 9,98,568 |
| B-HNI (min) | 68 | 1564 | Rs. 10,13,472 |
Company Financials
Before you make an investment decision, take a look at the table below to know about the financial metrics of Cello World Limited.
| Particulars | For the Financial Year Ending (Figures in Rs. Million) | ||
| March 31, 2023 | March 31, 2022 | March 31, 2021 | |
| Total Assets | 15,516.92 | 13,336.61 | 11,465.14 |
| Total Liabilities | 10,153.03 | 10,608.81 | 10,810.78 |
| Total Expenses | 14,282.39 | 10,760.09 | 8,238.91 |
| Total Revenue | 18,134.35 | 13,751.09 | 10,595.84 |
| Profit After Tax | 2,850.66 | 2,195.23 | 1,655.48 |
| EBITDA | 4,372.78 | 3,495.04 | 2,868.70 |
Cello World Limited IPO Overview
The leading household goods manufacturer Cello World Limited filed draft papers with SEBI in August 2023. According to this document, the company plans to raise Rs. 17,500 million via an Offer for Sale (OFS) by promoters and selling shareholders.
The OFS participants include the promoters- Pankaj Ghisulal Rathod, Gaurav Pradeep Rathod and Pradeep Ghisulal Rathod and selling shareholders- Ruchi Gaurav Rathod, Babita Pankaj Rathod and Sangeeta Pradeep Rathod.
The company will not receive any proceeds from this IPO. The entire amount would go to the shareholders and promoters after the deduction of offer-related expenses. The public offer would enhance Cello World’s brand image and visibility and allow the trading of its shares.
Additional Read: Lohia Corp Ltd IPO
Other IPO Details
Kotak Mahindra Capital, JM Financial, ICICI Securities, IIFL Securities and Motilal Oswal Investment Advisors Limited will be the book-running lead managers for Cello World’s upcoming IPO. Link Intime India will be the registrar.
The company along with its underwriters have set the face value for each share as Rs. 5 per equity share. After their launch, Cello World Limited IPO shares are likely to get listed in both stock exchanges namely BSE and NSE.
Cello World Limited is yet to declare other crucial information about its upcoming IPO. This includes price band, lot size, IPO opening and closing dates among other details.
Strengths
The points below will take you through some of the strengths of Cello World Limited that make its IPO worth investing in.
- The company has held a very strong market position for years among its target audience. This helped the company grow a well-established brand name.
- Cello World Limited has a consistent track record of highlighting its endeavours in scaling up new product categories and businesses.
- This company holds the capability of marketing, manufacturing and selling a diverse range of products while maintaining optimum inventory levels.
- The company is run by a skilled and experienced team of employees who are backed by promoters with decades of experience and excellent leadership skills.
- Cello World Limited hosts a pan-India distribution network with a presence across multiple channels.
Risks Involved
Besides the above strengths, here are some of the associated risks that can hamper the business of Cello World Limited.
- Fluctuations in the prices of raw materials like plastic polymer and plastic granules can disrupt Cello World Limited’s business, operations, financial conditions and cash flow.
- This company highly relies on its network of distributors to distribute its products within India and overseas. Any disruption in the distribution network can adversely affect the company’s revenue and cash flow.
- Reliance on third-party contract manufacturers for a few products can expose the company to certain risks that can adversely affect its business.
Also Read: Risk of investing in IPO
Summary
This blog will help you get a detailed idea about Cello World Limited and its upcoming IPO, especially if you find the RHP tough to comprehend. Before investing, consider knowing your current financial standing and risk appetite to make an informed decision.
You can also explore our website to check out the steps to invest in Cello World Limited’s IPO. Furthermore, you can also open a Demat and trading account with us to start investing in upcoming IPOs with a few simple steps and grow your wealth.
Cello World Limited IPO FAQs
The product categories include drinkware, lunchboxes, dinnerware, cleaning products, bakeware, jars and containers and kitchen appliances.
Some of the prominent awards that Cello World Limited has received include Outstanding Performance for 15 years, Most Trusted Brand for 6 years, Promising Brand and Most Recognised Consumer Brand.
Pradeep Ghisulal Rathod, Pankaj Ghisulal Rathod, Sangeeta Pradeep Rathod, Gaurav Pradeep Rathod, Ruchi Gaurav Rathod and Babita Pankaj Rathod are the selling shareholders of the upcoming Cello World Limited IPO.
The company and underwriters have announced the face value for Cello World Limited IPO to be Rs. 5 per equity share.
