Cello World Announces Price Band For Its IPO; Here’s All You Need To Know About Share Price, Issue Date And Other Details

Renowned pen maker Cello World's initial public offering (IPO) will open for subscription on November 1 and will close on November 1. The company has fixed its IPO price band in the range of Rs 617 to Rs 648 per equity share of face value of Rs 5.

Also read: Cello World IPO: Pen Maker Increases IPO Size To Rs 1900 Cr; All You Need To Know About Share Price, Issue Date, Other Important Details

The floor price equates to 123.40 times the face value of the equity shares, while the cap price stands at 129.60 times the face value of the equity shares. The price/earnings ratio, considering diluted EPS for fiscal 2023, is 46.85 times for the floor price and 49.20 times for the cap price. The lot size for the Cello World IPO is 23 equity shares, with multiples of 23 equity shares available thereafter.

The IPO comprises a full offer for sale (OFS), in which promoters and other shareholders will divest shares with a face value of Rs 5, amounting to a total of Rs 1,900 crore. Additionally, there is an allocation of up to Rs 10 crore reserved for eligible employee subscriptions.

The forthcoming issue will involve the following share offerings by the promoters: Pradeep Ghisulal Rathod will offer shares worth Rs 300 crore, Pankaj Ghisulal Rathod will contribute Rs 736 crore, Gaurav Pradeep Rathod will offer Rs 464 crore, Sangeeta Pradeep Rathod will contribute Rs 200 crore, while both Babita Pankaj Rathod and Ruchi Gaurav Rathod will offer Rs 100 crore each.

“The company will not receive any proceeds from the offer (“Offer Proceeds"). 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," said the company in the RHP.

Kotak Mahindra Capital Co. Ltd, ICICI Securities Ltd, IIFL Securities Ltd, JM Financial Ltd and Motilal Oswal Investment Advisors Ltd are book running lead managers and Link Intime India Pvt. Ltd is registrar.

In the fiscal year 2023, consolidated revenue from operations saw a year-on-year surge of approximately 32%, reaching Rs 1,796.69 crore, while the net profit exhibited a growth of 29.86%, reaching Rs 285 crore.

Cello World IPO GMP Today

The Grey Market Premium (GMP) for Cello World's IPO stands at +95 today, suggesting that Cello World shares traded at a premium of Rs 95 in the grey market on Wednesday, as reported by investorgain.com.

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Taking into account the upper end of the IPO price range and the current grey market premium, the projected listing price for Cello World shares is around Rs 743 per share. This figure represents a 14.66% increase over the IPO price of Rs 648.