Cello World Ltd

Shares of Cello World jumped 9.45% in the past three trading sessions.

The stock entered the stock exchanges on 6 November 2023. The scrip was listed at Rs 831, exhibiting a premium of 28.24% to the issue price of Rs 648. It is currently up 31% over its listing price.

A domestic broker recently initiated coverage on Cello World with a 'Buy' rating and a target price of Rs 1,100. The brokerage anticipates that the company will outpace industry growth.

The initial public offer (IPO) of Cello World was subscribed 38.90 times. The issue opened for bidding on 30 October 2023 and it closed on 1 November 2023. The price band of the IPO was fixed at Rs 617-648 per share.

The offer comprised an offer for sale of up to 2,93,20,988 equity shares. 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 portion.

The company did not receive any proceeds from the offer. All the offer proceeds (net of any offer related expenses to be borne by the selling shareholders) were received by the respective selling shareholders, in proportion to the equity shares offered by them in the offer for sale.

Cello World is a prominent player in the consumerware market in India with presence in the consumer houseware, writing instruments and stationery, and moulded furniture and allied products and consumer glassware categories. The company operates 13 manufacturing facilities across five locations in India and are currently establishing a glassware manufacturing facility in Rajasthan.

The company reported a net profit of Rs 84.9 crore and revenue from operation of Rs 527.1 crore for the three months ended on 31 December 2023 (Q3 FY24). EBITDA stood at Rs 136.6 crore while the EBITDA margin stood at 25.9%.

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Cello World will hold a meeting of the Board of Directors of the Company on 9 February 2024.

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Revenue from operations jumped 3.64% to Rs 488.96 crore in Q2 FY24 as compared with Rs 471.77 crore posted in Q1 FY24.

Profit before tax increased 2.34% QoQ to Rs 117.58 crore in Q2 FY24.

During the quarter, EBITDA stood at Rs 120.3 crore and the EBITDA margin was at 24.6%.

66.9% of revenue in Q2 FY24 came from the consumer ware business. Writing instruments business earned 16.8% of revenue and 16.3% revenue came from moulded furniture and related products.

Pradeep Rathod, chairman & managing director, Cello World, said, “We are in the process of setting up a glassware manufacturing facility in Rajasthan, which is expected to have an installed annual capacity of 20,000 tonnes of glassware per annum. We will continue to make investments in efficiency and automation of our production processes to achieve greater efficiency in manufacturing our products, from design to commercial production.

We are planning to expand our sales and distribution network in states especially in markets where our entry has been in the recent past. In these markets, we intend to increase customer wallet share, as well as enter in arrangements with more distributors and continue to strengthen the Brand.”

Shares of Cello World debuted on the bourses on 6 November 2023. The scrip was listed at Rs 831, exhibiting a premium of 28.24% to the issue price of Rs 648.

Cello World is a prominent player in the consumerware market in India with presence in the consumer houseware, writing instruments and stationery, and moulded furniture and allied products and consumer glassware categories. It operates 13 manufacturing facilities across five locations in India and is currently establishing a glassware manufacturing facility in Rajasthan.

The scrip rose 0.92% to settle at Rs 781.20 on Friday, 24 November 2023. The domestic stock market is shut today (27 November 2023) on account of Gurunanak Jayanti.

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Cello World will hold a meeting of the Board of Directors of the Company on 25 November 2023.

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The scrip was listed at Rs 831, exhibiting a premium of 28.24% to the issue price.

So far, the stock has hit a high of 834.70 and a low of 781.50. On the BSE, over 7.08 lakh shares of the company were traded in the counter so far.

The initial public offer (IPO) of Cello World was subscribed 38.90 times. The issue opened for bidding on 30 October 2023 and it closed on 1 November 2023. The price band of the IPO was fixed at Rs 617-648 per share.

The offer comprised an offer for sale of up to 2,93,20,988 equity shares. The offer also includes a reservation for a subscription by eligible employees and a discountof Rs 61 per equity share is being offered to eligible employees bidding in the employee reservation portion.

The company will not receive any proceeds from the offer. All the offer proceeds (net of any offer related expenses to be borne by the selling shareholders) will be received by the respective selling shareholders, in proportion to the equity shares offered by them in the offer for sale.

Ahead of the IPO, Cello World on 27 October 2023, raised Rs 566.99 crore from anchor investors. The board allotted 87.49 lakh shares at Rs 648 each to 39 anchor investors.

Cello World is a prominent player in the consumerware market in India with presence in the consumer houseware, writing instruments and stationery, moulded furniture and allied products and consumer glassware categories. The popular sub-brands under the Cello brand include Kleeno, Puro, Chef, H2O, Modustack, Maxfresh and Duro. The company own and operate 13 manufacturing facilities across five locations in India, as of 30 June 2023.

The company reported a net profit of Rs 82.83 crore and total income of Rs 471.78 crore for the three months ended on 30 June 2023.

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The equity shares of Cello World (Scrip Code: 544012) are listed effective 06 November 2023 and admitted to dealings on the Exchange in the list of ''B'' Group Securities.

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