Cello World IPO Gains Momentum with 57% Subscription On Day 2

Cello World's initial public offering (IPO) kicked off with a strong start as it garnered a 57% subscription on its second day as of 11 am. The IPO, which opened on Monday, October 30, is set to close on Wednesday, November 1, offering investors an opportunity to own a piece of the renowned company that deals in stationery, writing instruments, moulded furniture, consumer housewares, and related products.

Cello World IPO has set a price band for its equity shares at a range of Rs 617 to Rs 648 per share, with a face value of Rs 5. The IPO has attracted significant interest from various investor categories. Notably, it has reserved not more than 50% of the shares for Qualified Institutional Buyers (QIBs), at least 15% for Non-Institutional Investors (NIIs), and a minimum of 35% for Retail Investors. Additionally, eligible employees participating in the employee reserve portion can avail of a discount of Rs 61 per equity share.

On the second day of the IPO, retail investors subscribed to 54% of the available shares in this segment. Non-institutional investors displayed oversubscription with a subscription rate of 1.45 times. Qualified Institutional Buyers, however, saw a modest subscription of 2%, while the employee portion was subscribed at 60%.

The subscription status on day two revealed that Cello World IPO received bids for 1,26,59,453 shares against the 2,20,61,947 shares on offer. Retail investors' portion received bids for 58,54,673 shares against 1,07,21,232 shares available, while non-institutional investors bid for 66,78,740 shares against 45,94,814 on offer. The Qualified Institutional Buyers (QIBs) portion received bids for 1,19,370 shares against 65,66,045 shares on offer, and the employee portion saw bids for 1,09,503 shares against 1,79,856 shares available.

Cello World IPO, an offer for sale (OFS), represents a total value of Rs 1,900 crore, with a Rs 10 crore reservation for eligible employees. The IPO includes share sales by various shareholders, with Pradeep Ghisulal Rathod offloading Rs 300 crore worth of shares, Pankaj Ghisulal Rathod selling Rs 736 crore, Gaurav Pradeep Rathod divesting Rs 464 crore, Sangeeta Pradeep Rathod disposing of Rs 200 crore, and both Babita Pankaj Rathod and Ruchi Gaurav Rathod selling Rs 100 crore each.

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

Cello World, a company with a rich history founded by the late Ghisulal Dhanraj Rathod, has been a household name for its wide range of products, which include stationery, writing instruments, moulded furniture, consumer housewares, and related goods. The IPO's early subscription success is a clear indication of investors' confidence in the company's prospects. As the subscription period continues, all eyes are on Cello World to see how the IPO unfolds in the coming days.