MUMBAI, 25 OCTOBER, 2023 (GPN): Cello World Limited, a leading company in the consumer ware market in India with presence in the consumer houseware, writing instruments and stationery, and moulded furniture and allied products categories, and are amongst the largest brands in the Indian consumer ware market, has fixed the price band at Rs 617 to Rs 648 per Equity Share for its maiden initial public offer.  The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Monday, October 30, 2023, for subscription and close on Wednesday, November 01, 2023. Investors can bid for a minimum of 23 Equity Shares and in multiples of 23 Equity Shares thereafter.

The Public Issue of face value of Rs 5 per Equity Share is entirely an offer for sale of equity shares up to Rs 1900 crore. The offer also includes a reservation for a subscription by eligible employees and a discount of Rs 61 per equity share is being offered to eligible employees bidding in the employee reservation. The IPO for anchor investors will open on 27 November 2023.

Founded by late Ghisulal Dhanraj Rathod, formerly the promoter and father of two current promoters, Pradeep Ghisulal Rathod and Pankaj Ghisulal Rathod, had been associated with Cello Plastic Industrial Works and the “Cello” brand since 1962.

Many promoters of the company are going to sell their stake through the IPO of Cello World Limited. In this, Pankaj Ghisulal Rathod, Gaurav Pradeep Rathod, Sangeeta Pradeep Rathod, Babita Pankaj Rathod, Ruchi Gaurav Rathod are going to sell their shares. The company has reserved 10 crore shares for its employees. In this IPO, 50 percent shares have been reserved for institutional buyers. Whereas 15 percent share has been reserved for non-institutional investors and 35 percent share has been reserved for retail investors.

As of June 30, 2023, the company offered a wide range of 15,891 stock-keeping units (“SKUs”) spanning its various product categories. In 2017, it ventured into the glassware and opal ware business under the “Cello” brand. The company boasts an extensive product portfolio across three key categories: consumer houseware, writing instruments and stationery, and moulded furniture and related products.

The company’s robust distribution network spans across the nation, supported by a sales team consisting of 721 members as of June 30, 2023. For the Consumer Houseware category, it collaborates with 717 distributors and around 58,716 retailers across India. For Writing Instruments and Stationery, it has 29 super-stockists, approximately 1,509 distributors, and roughly 60,826 retailers. In the Moulded Furniture and Allied Products category, it works with 1,067 distributors and around 6,840 retailers located throughout India.

For the fiscal year 2023, the consolidated revenue from operations increased 32.19% to Rs 1796.69 crore against Rs 1359.18 crore a year ago. Net profit increased by 29.86% from Rs 219.52 crore in fiscal 2022 to Rs 285.07 crore in fiscal 2023. It had the highest ROCE amongst the peers in FY 2021 and FY 2023 and highest EBITDA Margin for fiscal 2021, 2022 and 2023.

For the three months ended June 30, 2023, revenue from operations stood at Rs 471.78 crore and profit after tax at Rs 82.83 crore.

Kotak Mahindra Capital Company Limited, ICICI Securities Limited, IIFL Securities Limited, JM Financial Limited and Motilal Oswal Investment Advisors Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

Note:

Issue Size of the IPO based on the upper and lower end of the price band

	Offer for Sale (2,93,20,988 equity shares)
Lower Band (@617)	Rs 1900 crore
Upper Band (@648)	Rs 1900 crore

RHP: https://investmentbank.kotak.com/downloads/cello-world-limited-RHP.pdf