Cello World ends 22% higher on first day of trading
Shares of Cello World on Monday made a strong listing at the bourses by gaining 28 per cent. As against the issue price of ₹648, shares of Cello World, that has a strong presence in the consumer houseware, writing instruments and stationery, closed at ₹791.90 on the BSE and at ₹791.70 on the NSE, making a gain of 22.20 per cent over the issue price.
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, said that despite the premium valuation, the IPO received a positive response from investors. “This is likely due to the company’s strong brand recognition, diversified product portfolio, and pan-India presence,” she added.
38.90 times subscribed
The company came out with an IPO for ₹1,900 crore that saw a strong response from all category of investors, especially QIBs, as the offer was subscribed 38.90 times. As the entire issue was an offer-for-sale, the funds raised will not go to the company.
Qualified institutional buyers’ portion was subscribed by a whopping 108.6 times while the quota reserved for retail investors and non-institutions received bids for 3.06 times and 24.42 times. The employee portion received bids for 2.60 times. A discount of ₹61 a share was offered to eligible employees.
As a part of IPO, the company had garnered ₹567 crore from anchor investors, who included ICICI Prudential, Motilal Oswal, Goldman Sachs, Nomura, SBI Life Insurance, HDFC life insurance, BNP Paribas, All Spring Global, Morgan Stanley, TATA India Consumer Fund, Quant, CLSA Global, Aditya Birla Sun Life, Edelweiss, Reliance General Insurance, Invesco, Kotak Optimus and Bajaj Alliance.