Cello World Limited IPO: Review, Valuation, Date & GMP Today

Cello World Limited - Complete Overview

Established in 2018, Cello World is a well-recognized Indian consumer product brand. The company primarily operates in three key categories, which encompass writing instruments and stationery, moulded furniture, as well as consumer housewares and related products.

With over 60 years of industry experience, the company has developed a deep understanding of its customers. Cello World boasts 13 manufacturing facilities located in five different regions across India, and it is in the process of establishing a glassware manufacturing facility in Rajasthan. Furthermore, the company has established a robust pan-India distribution network.

Cello World's nationwide sales and distribution network is effectively bolstered by its dedicated team of 721 sales members. As of June 30, 2023, the company offers an extensive product range comprising 15,891 different SKUs.

 

What does the company do? 

Cello World is a renowned Indian consumer product brand with its primary focus on three main categories: writing instruments and stationery, moulded furniture, and consumer housewares and related products.

 

Company Products 

The company's product range encompasses items in the writing instruments and stationery category, kitchen products, moulded furniture, and related products.

 

 

IPO Overview

The Cello World IPO date is set to be open for subscription from October 30 to November 1, 2023, with an expected listing date of November 9, 2023. 

The Cello World IPO price falls within the range of Rs. 617 to Rs. 648 per share, and the total issue size for this upcoming IPO is Rs. 1,900.00 crore.

In terms of allocation, 50% of the shares will be reserved for institutional investors, 15% for non-institutional investors, and 35% for retail investors.

 

Cello World Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	30 October 2023
IPO Closing Date	1 November 2023
IPO Allotment Date	6 November 2023
Refund initiation	7 November 2023
IPO Listing Date	9 November 2023

 

Cello World Limited IPO Details

IPO Opening & Closing Date	30 October to 1 November 2023
Face value	Rs.5 per Share
Issue Price	Rs. 617 to Rs. 648 per Share
Lot Size	23 Shares
Price of 1 lot	Rs. 14,904
Issue Size	29,320,987 Shares (aggregating up to Rs.1,900.00 Cr)
Offer for Sale	29,320,987 Shares of Rs. 5 (aggregating up to Rs.1,900.00 Cr)
Employee Discount	Rs 61 per share
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

 

Cello World Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
Minimum Lot Investment (HNI)	14 Lot
Maximum Lot Investment (HNI)	67 Lot

 

Cello World Limited IPO Reservation

Institutional share Portion	50%
Non-institutional share Portion	15%
Retail share Portion	35%

 

Company Financial

Amount in Crores

Period	30 Jun 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Total Assets	1,686.05	1,551.69	1,333.66	1,146.51
Total Revenue	479.88	1,813.44	1,375.11	1,059.58
PAT	82.83	285.06	219.52	165.55
Net worth	1,226.56	665.73	444.04	289.59
Reserve & Surplus	784.91	238.75	87.26	98.66
Total Borrowings	328.64	335.11	462.91	334.07

 

Product-wise Revenue Breakup 

(Amount in Million)

Metrics	FY 21	FY 22	FY 23
Consumer Houseware	6,698.42	8,710.90	11,810.79
Writing Instruments and Stationery	1,113.80	1,693.35	2,849.99
Moulded Furniture and Allied Product	2,682.33	3,187.51	3,306.17
Product Category EBIT
Consumer Houseware	1,696.88	2,175.23	2,657.51
Writing Instruments and Stationery	256.89	375.20	655.13
Moulded Furniture and Allied Product	425.92	469.07	556.88

 

Breakdown of the Revenue from Operations

(Amount in Million)

Particulars	FY 21	FY 22	FY 23
General Trade	8,863.25	10,629.76	14,477.36
Export	449.66	1,262.99	1,402.07
Online sales (including sales from e-commerce marketplaces and our own websites)	925.80	1,138.40	1,421.43
Modern Trade	255.84	560.61	666.09
Total	10,494.55	13,591.76	17,966.95

 

Objective of the Issue 

This is an offer-for-sale issue, and the company will not receive any proceeds from it.

 

Promoters and Management of Cello World Limited

Pradeep Ghisulal Rathod, Pankaj Ghisulal Rathod and Gaurav Pradeep Rathod are the promoters of the company.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	91.08%

 

Peer Comparison

Below are the listed peers of Cello World Limited.

Company Name	Closing price on October 19, 2023 (Rs.)	EPS(Rs.)	P/E
Cello World Limited	-	13.17	-
Borosil Limited	397.60	7.86	50.59
Kokuyo Camlin Limited	141.45	2.44	57.97
La Opala RG Limited	452.20	11.08	40.81
Stove Kraft Limited	559.20	10.86	51.49
TTK Prestige Limited	802.95	18.34	43.78
Linc Limited	839.80	25.15	33.39
Hawkins Cookers Limited	7,210.95	179.24	40.23

 

IPO's Valuations

With the Cello World IPO price falling in the range of Rs. 617 to Rs. 648 per share and an EPS of Rs. 13.17 when considering the higher end of the issue price, the PE ratio for evaluating the IPO valuation stands at 49.20.

 

Dividend Policy

According to the Cello World IPO DRHP, the company has not issued any dividends in the past, and any potential future dividend payments are contingent upon the company's financial earnings.

 

IPO's Strengths

• A reputable and firmly established brand name with a solid market presence.
• A varied product range spanning different price points to meet a wide array of consumer needs.
• A demonstrated history of expanding into new businesses and product categories.
• A nationwide distribution network with a presence in various sales channels.
• Proficiency in producing a wide range of products and managing inventory effectively.
• An adept and experienced leadership team.
• Impressive historical financial performance.

 

IPO Weaknesses

• The company faces substantial competition, which could potentially result in a decrease in its market share.
• The proceeds from the Offer will not go to the company but will be directly received by the Selling Shareholders.
• There have been certain instances of delays in the payment of statutory dues by the company.
• The company is obligated to obtain, maintain, or renew various statutory and regulatory licenses, permits, and approvals.
• Failure to comply with safety, environmental, labour laws, and other relevant regulations, as well as changes in these regulations, could adversely impact the company's operations.
• Equity Shares were issued by the company at a price potentially lower than the Offer Price within the past year.
• There are ongoing legal proceedings against the company, its Promoters, its Directors, its Subsidiaries, and its Group Companies.

 

 

IPO GMP Today

The Latest GMP of Cello World Limited IPO is Rs. 115.

 

Conclusion

The company operates within a competitive industry and boasts two well-recognized household brands, namely "Cello" and "Unomax." With a consistent record of profitability and years of industry experience, seasoned investors are encouraged to consider the issue after conducting a thorough analysis.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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