From Pens to Casseroles: Cello World Limited IPO
Thursday, Nov 9, 2023
From Pens to Casseroles: Cello World Limited IPO
We all have used cello pens, right? How about using a cello water bottle as a kid? It feels nostalgic and takes us back to our school days. Well, this brand has done its job so well in catering to the needs of its customers that the tale spans over six decades now, Cello World Limited initiated by Pradeep Rathod, embarked on a transformative journey from crafting PVC footwear and bangles to becoming synonymous with every Indian household's essentials. Established in 1967 by Ghisulal Rathod, the company initially ventured into PVC footwear before a pivotal visit to the US sparked a revolutionary idea. Inspired by small, round-shaped plastic containers used to retain warmth in perishable items, Ghisulal introduced casseroles to the Indian market, earning him the title of "Casserole King of India."
Fast forward to today, with 13 manufacturing facilities spread across five Indian locations, Cello World has evolved beyond pens and stationery, diversifying into molded furniture, housewares, and related products. Pradeep Rathod's recently launched IPO has driven the company to new heights, with an astonishing 76% family ownership and a premium market listing, culminating in a remarkable market cap of 16000 crores. It's a testament to how a simple idea can evolve into a transformative legacy, redefining the landscape of Indian consumer goods.
IPO details and Outlook
With such progress and advancement, Cello World Limited launched an IPO with a book-built issue of Rs 1,900.00 crores. The bidding started on October 30, 2023, and ended on November 1, 2023. The allotment for Cello World Limited IPO was finalized on Thursday, November 2, 2023, and shares were listed on BSE and NSE on November 6, 2023.
The price band was set at ₹617 to ₹648 per share. The minimum lot size for an application being 23 Shares. The minimum amount of investment required by retail investors was ₹14,904. The issue also included a reservation of up to 170,357 shares for employees offered at a discount of Rs 61 to the issue price. Cello World's share price was trading at a premium of ₹160 in the grey market and got listed at a 27.9% premium.
Financial Success Story
Cello world’s limited revenue increased by 31.88% PAT rose by 29.85% between the financial year ending with March 31, 2023 and March 31, 2022. It had the highest ROCE (return on capital employed) amongst the peers between FY21-23 and the highest EBITDA margin for fiscal 2021, 2022, and 2023. With such impressive figures, it seems that the company has been growing well in past years as well.
Motive
Launching an IPO solely as an offer for the sale of 2.93 crore shares, Cello World aims to raise visibility and its brand aura. The company anticipates that this strategic move will elevate its equity shares' listing, casting a brighter spotlight on its vibrant journey. With this offering, Cello World's IPO emerges as a testament to its ambitious stride, aiming to captivate markets and leave a mark on the realms of industry recognition and consumer trust.
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