Cello World's IPO: Files draft with the Watchdog: ₹1,750 Cr to secure growth via public offering

Cello World's draft IPO targets ₹1,750 crore, led by key stakeholders, backed by ICICI Venture, diverse products, and impressive FY23 growth.

Cello World files draft IPO papers with Sebi

Cello World, with plans to go public, submits draft IPO papers to the Securities and Exchange Board of India (SEBI).

Here are 10 things you should know about the IPO for Cello World:

1. Company Profile

Trace back to 1967, when the Rathod family's Cello Group started its journey with a modest plastic PVC footwear and bangles factory in Mumbai. Since then, it has diversified its offering, including drink ware, opal ware, kitchen appliances, cleaning aids, bathroom accessories, and sanitisers. With a robust manufacturing setup, they operate 13 facilities across five locations in India.

2. Offering Size:

The IPO will be exclusively an offer for sale (OFS), with Cello World aiming to raise ₹1,750 crore with a total issue size of 5,034,000 shares and a lot size of 1200 shares. The shares will be sold by key stakeholders,  including Pradeep Ghisulal Rathod, Pankaj Ghisulal Rathod, and others.

3. Reservation:

The IPO offering will comprise 47.50% of the total shares for each category.

4. Financial Glimpse:

With a strong financial performance in recent years, Cello World reported revenue of ₹1,796.70 crore in FY23, compared to ₹1,359.18 crore the previous year. Its net profit rose to ₹285.07 crore from ₹219.52 crore. The EBITDA margin saw a slight decline from 25.71% to 24.34%.

5. Key Indicators:

Cello World's market capitalisation is ₹186.86 crore and a price-to-earnings (P/E) ratio of 24.1. Its earnings per share (EPS) stands at ₹11.6, with a return on net worth (RoNW) of 10.55%.

6. Comparison with Peers:

Cello World is stepping onto the stage alongside competitors like Milton, La Opala, and Borosil.

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7. Objectives of the IPO:

The funds raised from the IPO will serve multiple purposes, including repayment of certain borrowings, expansion through repairs and renovation of existing outlets, working capital requirements, and general corporate expenses.

8. Promoters and Management:

The company's promoters are the Rathod family, where Gaurav Pradeep holds the highest stake at 25.73%, followed by Pankaj Ghisulal at 16.24%, and Pradeep Ghisulal at 12.86%.

9. Lead Managers:

Cello World's IPO is backed by ICICI Securities, IIFL Securities, JM Financials, Kotak Mahindra Capital, and Motilal Oswal Securities.

10. IPO Dates:

While the exact dates are subject to change, the IPO is expected to open for subscription on June 15, 2023, and close on June 20, 2023. The tentative listing date is set for June 28, 2023, on the NSE SME platform.

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Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.


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