Cello World Limited IPO is coming up with an offer to sell 29,320,987 equity shares by the existing shareholders. The total IPO is worth INR 1,900 crores. The company will not receive any proceeds from the offer but intends to provide liquidity to the existing shareholders and help build the brand image.
Cello World Ltd IPO – Important Details
|Cello World Limited IPO Date||October 30, 2023 to November 1, 2023|
|Cello World Limited IPO Listing Date||November 9, 2023|
|Cello World Limited IPO Price||INR 617 to INR 648 per share|
|Cello World Limited IPO Lot Size||23 Shares|
|Cello World Limited IPO Total Issue Size||INR 1,900 crores|
|Cello World Limited IPO Basis of Allotment||November 6, 2023|
|Cello World Limited IPO Initiation of Refunds||November 7, 2023|
|Cello World Limited IPO Credit of Shares to Demat||November 8, 2023|
|Cello World Limited IPO Issue Type||Book Built Issue IPO|
|Cello World Limited IPO Listing At||BSE, NSE|
Cello World Limited IPO – Company Profile
The consumerware market is divided into two categories: consumer houseware and consumer glassware. The company is a prominent player in the consumerware market in India with a presence in consumer houseware, writing instruments, stationery, molded furniture, allied products, and consumer glassware categories.
As of June 30, 2023, the company offered 15,891 stock-keeping units (“SKUs1”) across its product categories. The company owns/leases and operates 13 manufacturing facilities across five locations in India as of June 30, 2023, and it is currently establishing a glassware manufacturing facility in Rajasthan.
The company has developed a strong brand identity through effective brand advertisements and marketing campaigns, including “Cello – Companion for Life,” “Cello – Rishta Zindagi Bhar Ka,” “Hot Chahive Toh Cello” and “Don’t Just Write, Glide.
Cello World Limited IPO – Fundamental Analysis
Cello World Limited has shown strong revenue growth, improved profitability, reduced debt, and strong liquidity over the past three years. However, there is a decline in RoNW, which might be a concern for some investors.
The company’s revenue has been steadily increasing over the past three years, which is a positive sign. It has grown from ₹10,494.55 million in 2021 to ₹17,966.95 million in 2023, indicating a strong top-line growth.
The Profit and Loss After Tax has also increased, which is a good indicator. The company’s net profit has grown from ₹1,655.48 million in 2021 to ₹2,850.55 million in 2023.
Return on Net Worth (RoNW):
The RoNW has decreased from 52.21% in 2021 to 23.17% in 2023. While it’s still healthy, the decline might be a concern.
Earnings per Share (EPS):
The diluted EPS has been increasing, indicating that the earnings per share have grown consistently over the years. This is a positive sign for potential investors.
Net Asset Value (NAV) per Equity Share:
The NAV per Equity Share has also increased over the years, suggesting an increase in the company’s net worth. This is generally a positive indicator.
The debt-equity ratio has decreased significantly, from 5.11 in 2021 to 0.62 in 2023. A lower debt-equity ratio is generally favorable as it implies reduced financial risk.
Operating Margin and Gross Profit Margin:
Both operating and gross profit margins are relatively stable over the three-year period, indicating that the company is effectively managing its costs and maintaining profitability.
The current ratio has improved from 0.77 in 2021 to 2.22 in 2023. This signifies a healthier short-term liquidity position.
Inventory Turnover Ratio:
The inventory turnover ratio has increased over the years, which is generally a positive sign as it indicates efficient inventory management.
Total Assets and Total Liabilities:
Total assets have been steadily increasing, and total liabilities have been relatively stable over the three years, which is a sign of a growing and healthy balance sheet.
Cello World Limited IPO Financial Information
|Particular||As at 31 March 2021||As at 31 March 2022||As at 31 March 2023|
|Revenue (₹ in Million)||10,494.55||13,591.76||17,966.95|
|Equity (₹ in Million)||654.36||2,727.80||5,363.89|
|Expenses (₹ in Million)||8,238.91||10,760.09||14,282.39|
|Profit and Loss After Tax (₹ in Million)||1,655.48||2,195.23||2,850.55|
|Diluted EPS only (₹)||7.75||10.46||13.17|
|NAV per Equity Share (₹)||14.85||22.77||34.14|
|Total Assets (in million)||11,465.14||13,336.61||15,516.92|
|Total Liabilities (in million)||10,810.78||10,608.81||10,153.03|
|Inventory Turnover Ratio||1.73||1.99||2.22|
|Gross Profit Margin||50.31%||50.08%||50.16%|
Cello World IPO Peer Comparison
Cello World Limited’s substantial revenue of ₹17,966.95 million and a RoNW of 23.17% demonstrate its market prominence. While it exhibits competitive RoNW, evaluating price-to-earnings (P/E) ratios, face value, and net asset value (NAV) per equity share is essential for investment considerations.
|Company||Revenue from operations (₹ in million)||Face Value per Equity Share (₹)||P/E||EPS (Basic) (₹)||EPS (Diluted) (₹)||RoNW (%)||NAV per Equity Share (Basic) (₹)|
|Cello World Limited||17,966.95||5||NA||13.65||13.17||23.17%||34.14|
|Kokuyo Camlin Limited||7,749.43||1||57.97||2.44||2.44||9.31%||26.18|
|La Opala RG Limited||4,523.24||2||40.81||11.08||11.08||15.87%||69.81|
|Stove Kraft Limited||12,838.47||10||51.49||10.87||10.86||8.87%||122.13|
|TTK Prestige Limited||27,771.30||1||43.78||18.34||18.34||13.11%||139.85|
|Hawkins Cookers Limited||10,057.95||10||40.23||179.24||179.24||34.32%||522.20|
Cello World Ltd IPO Objective
The main objective of Cello World Limited’s IPO is to achieve the benefits of listing to enhance the visibility and brand image.
Cello World Limited IPO Risks And Challenges
Cello World Limited faces risks related to unsuccessful product launches, volatile plastic material prices, and trademark licensing issues for key brands like “Cello,” potentially impacting business, finances, and cash flow.
- The launch of new products and a range of products that prove to be unsuccessful could affect the growth plans, which could adversely affect the business, results of operations, financial condition, and cash flows.
- Fluctuations in raw material prices, especially plastic granules and plastic polymer prices, and disruptions in their availability may hurt the business, results of operations, financial condition, and cash flows.
- The company does not own the trademark for its key brands, including “Cello,” “Unomax,” “Kleeno,” “Puro,” and their respective logos. If the company cannot renew the relevant agreements that grant the license to use these trademarks and logos, its business, results of operations, financial condition, and cash flows may be adversely affected.
Cello World IPO – Industry & Market Potential
Indian consumers are becoming increasingly open to embracing global consumerware trends, resulting in a diverse market that caters to a wide range of preferences and needs. This awareness influences their choices and preferences when it comes to consumer products.
The market was valued at INR 348 Bn in FY 2022, up from INR 305 Bn in FY 2020, reflecting a CAGR of 6.9%. It is projected to reach INR 565 Bn by FY 2027, with a CAGR of 10.2% for the period FY 2022-2027. The growth of the Indian Consumerware Market is propelled by rising disposable income, the trend towards nuclear families, and increased demand for organized and functional kitchen spaces.
Cello World Limited IPO – Type of Offer
Cello World Limited’s IPO consists of an offer to sell 29,320,987 equity shares by current shareholders. The overall IPO is valued at INR 1,900 crores.
Cello World Limited IPO Offer Size
Cello World Limited’s IPO comprises 29,320,987 equity shares being offered by existing shareholders, amounting to a total IPO value of INR 1,900 crores. The company will not garner any funds from this offering. The primary objectives are to bolster its brand reputation and provide liquidity to its current shareholders.
Cello World Limited IPO Allotment Structure
Cello World Limited’s IPO allocates 50% of shares to QIBs, comprising banks and mutual funds, per SEBI regulations. Another 15% is reserved for NIIs, which encompass corporate bodies and investors with over Rs. 2 lakhs. The remaining 35% is designated for RIIs with investments below Rs. 2 lakhs.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
How to apply for a Cello World Limited IPO?
To apply for the Cello World Limited IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Cello World Limited IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for the Cello World Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Cello World Limited IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Cello World Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Cello World Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Cello World Limited IPO:
- Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Cello World Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
- NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Cello World Limited IPO Offer Registrar
The registrar for the Cello World Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: 022-4918 6200
Email: [email protected]
Cello World Limited IPO FAQs
1. What is the allotment date of the Cello World Limited IPO?
The allotment date is November 6, 2023.
2. What is the price band of the Cello World Limited IPO?
The price band of the shares issued by the company is INR 617-648 per share.
3. What is the size of the Cello World Limited IPO?
Cello World Limited is preparing to launch an IPO, comprising the sale of 29,320,987 equity shares by current shareholders. The overall IPO is valued at INR 1,900 crores.
4. What is the listing date of the Cello World Limited IPO?
The listing date is November 9, 2023.