Investor Alert: Cello World's ₹1,900 Crore IPO Now Open for Subscription

Cello World, a renowned Mumbai-based consumer-ware company, has initiated its ₹1,900 crore initial public offering (IPO) for subscription today, October 30. The subscription window will remain open until November 1. Notably, the company already secured ₹567 crore from 39 anchor investors, including heavyweights like Goldman Sachs, Nomura, Morgan Stanley, and SBI Life.

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Cello World, a renowned Mumbai-based consumer-ware company, has initiated its ₹1,900 crore initial public offering (IPO) for subscription today, October 30. The subscription window will remain open until November 1. Notably, the company already secured ₹567 crore from 39 anchor investors, including heavyweights like Goldman Sachs, Nomura, Morgan Stanley, and SBI Life.

Before the IPO's launch, shares of Cello World were trading in the grey market at a premium of ₹120. The grey market, an unofficial platform for buying and selling IPO shares, indicates significant investor interest.

For potential investors, analysts generally recommend subscribing to the IPO, citing the company's strong brand recognition and market presence. Despite a relatively high price-earnings (P/E) ratio of 47.47, some experts believe it's a suitable investment for high-risk investors with a long-term outlook.

Swastika investment, for instance, encourages a subscription, emphasizing Cello World's diversified product portfolio and extensive distribution network. The company's consistent financial performance and expansion plans also contribute to its appeal.

However, analysts have pointed out a few concerns. Cello World doesn't own trademarks for its key brands, faces competition from industry peers, and the IPO consists solely of an offer for sale (OFS).

Mehta Equities backs the long-term perspective, highlighting Cello World's established brand and diverse product range. Reliance Securities recommends subscribing, noting the company's growth potential in a large market with strong financials.

Choice Broking, while acknowledging the sector's growth prospects, suggests subscribing with caution due to the high pricing of the IPO.

Cello World offers its shares in the range of ₹617-648, with a minimum bid requirement of 23 equity shares. The company aims to raise ₹1,900 crore through the OFS. The selling shareholders include the promoters Pradeep Ghisulal and others.

The offering includes a ₹10 crore reservation for eligible employees and allocations for qualified institutional buyers, non-institutional investors, and retail investors.

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The company's financial performance for FY23 has been robust, with a 32% increase in consolidated revenue from operations compared to the previous year. Cello World is a well-established player in the consumerware market in India, with a presence in various categories.

The IPO's book-running lead managers are Kotak Mahindra Capital Company, ICICI Securities, IIFL Securities, JM Financial, and Motilal Oswal Investment Advisors, with KFin Technologies serving as the registrar. The equity shares will be listed on both the BSE and the NSE.

In summary, the Cello World IPO presents an opportunity for investors to participate in a reputable Indian consumer product company, but potential investors should consider the high valuation and competitive landscape before making a decision.