Cello World is launching its IPO. The IPO opens for subscription on 30th October and will close on 1st November.
What does Cello World do?
Cello World Limited is involved in the business of manufacturing consumer products. The company’s operations are primarily segmented into three major product categories:
(i) Consumer houseware includes a vast array of products ranging from Melmoware, Thermoware, and Opalware to Kitchen Appliances, Glassware, and more.
(ii) Writing instruments and stationery.
(iii) Moulded furniture and allied products.
What is the issue size of the Cello World IPO?
The entire public offer of the company is an offer for sale (OFS) worth Rs. 1,750 crores from the existing shareholders.
Financials of Cello World
| Financial Year | Total Assets (₹ crores) | Total Revenue (₹ crores) | Profit After Tax (₹ crores) | EPS | EBITDA (₹ crores) |
|---|---|---|---|---|---|
| March 31, 2021 | 1,146.514 | 1,049.455 | 165.548 | 7.75 | 286.9 |
| March 31, 2022 | 1,3336.661 | 1,359.176 | 219.523 | 10.46 | 349.5 |
| March 31, 2023 | 1,551.692 | 1,796.695 | 285.066 | 13.17 | 437.3 |
Revenue break-up
| Particulars | FY23 | FY22 | FY21 |
|---|---|---|---|
| Consumer Houseware | 65.74% | 64.09% | 63.83% |
| Writing Instruments and Stationery | 15.86% | 12.46% | 10.61% |
| Moulded Furniture and Allied Products | 18.40% | 23.45% | 25.56% |
| Others | 0.00% | 0.00% | 0.00% |
Risk factors to consider:
Raw Material Price Volatility: The company faces risks from fluctuating prices of plastic granules and polymers.
Trademark Concerns: The company doesn’t own trademarks for key brands like “Cello”, “Unomax”, etc. The “Cello” brand is also used by a competitor.
Third-party Manufacturing Risks: Dependence on contract manufacturers introduces potential operational risks.
Distribution Network Dependency: The company heavily relies on its distribution channels, both in India and abroad.
Construction Delays: Potential delays in the Rajasthan Glassware Unit’s construction and subsequent production challenges.
Capacity Utilization Concerns: Maintaining capacity utilization is crucial for the company’s profitability.
Offer Proceeds: The proceeds from the Offer go directly to Selling Shareholders, not the company.
Schedule of Cello World IPO
| Issue Period | October 30, 2023, to November 1st, 2023 |
|---|---|
| Price band | ₹ 617 - 648 |
| Minimum Bid quantity | 23 & Multiples thereof |
| Deadline for accepting UPI mandate | 5:00 PM on the issue Closing Date. |
| Finalization of Allotment | November 6, 2023 - Monday |
| Initiation of Refunds | November 7, 2023 - Tuesday |
| Credit of Shares | November 8, 2023 - Wednesday |
| Date of Listing | November 9, 2023 - Thursday |
| Mandate end date | November 16, 2023 - Thursday |
| Anchor Investors Lock-In End Date | December 1, 2023 - Friday |
How to apply for the Cello World IPO?
You can apply for the Cello World IPO using any supported UPI app by following two steps:
-
Enter your bid on Kite
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Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status of Cello World IPO?
You can check the allotment status for the Cello World IPO on the website of the Registrar and Transfer agent. Alternatively, you can also check the allotment status on the NSE website.