Cello World's initial public offering (IPO) saw a 38% subscription on its second day, Tuesday, with investors bidding for 82% of the available shares. The company has priced its shares at ₹617-648, aiming to raise ₹1,900 crore through an offer for sale (OFS) route involving over 2.93 crore equity shares.
Non-institutional investors (NIIs) subscribed 2.19 times their quota, retail investors at 72%, and employees at 77%. However, qualified institutional buyers (QIBs) showed a lower interest level with only a 2% subscription.
The company raised ₹567 crore (INR100 crore = approx. USD12 million) from 39 anchor investors at ₹648 per share ahead of the public offering. Brokerage firms including AUM Capital, Dalal & Broacha Stock Broking, and IndSec Research expressed positivity about the issue due to Cello's extensive pan-India presence and growth potential.
Despite facing high competition in its core business, Cello World has shown a compound annual growth rate (CAGR) of 31% over FY21-23. The company offers a broad product range with 15,891 SKU's. IndSec Research gave a 'subscribe for long term' rating to the IPO.
However, the brokerage firms also noted potential headwinds for the company due to the OFS nature of the IPO and aggressive pricing.
The issue is managed by ICICI Securities, Kotak Mahindra Capital, IIFL Securities, JM Financial, and Motilal Oswal Investment Advisors while Link Intime India serves as the registrar.
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