Mumbai: CELLO World Limited is launching its Initial Public Offering (IPO) of equity shares aggregating Rs 1,900 crores. The equity shares, which have been priced at Rs 617 to Rs 648 per share, will open on October 30 and close on November 1, 2023.
Pradeep Rathod, CMD, Cello World Limited, said here recently that the company offered consumer products across three categories including consumer houseware, writing instruments and stationery, moulded furniture and allied products.
Noting that majority of the IPO will be going towards the promoters, he said the company is looking at inorganic and other fields of activity in its future plans. “Our company began in 1982 and covered 60-65% of India,” he said, adding “We want to be in a niche area as today is seeing cookware completely changing and we want to grow at a healthy pace and margin.”
Replying to questions, he said “Exports are 10% of our revenue and with India having a low-cost manufacturing sector, the export potential is high for writing instruments from India.”
Highlighting the rationale behind this IPO, he said “Growth will justify this in the coming years and our profits will take care of all our CAPEX.”
While having 13 manufacturing facilities in Daman, Hardwar (Uttarakhand), Baddi (Himachal Pradesh), Chennai (Tamil Nadu) and Kolkata (West Bengal), the company is now setting up a glassware manufacturing facility in Rajasthan.
The company’s net profit had increased by 30% to Rs 285 crore in FY23 from Rs 219.52 crore in FY22.
The shares are proposed to be listed on the BSE and NSE. Kotak Mahindra Capital Company Ltd, ICICI Securities Ltd, JM Financial Ltd and Motilal Oswal Investment Advisors Ltd are the book-running lead managers.
