Cello World, a consumer goods company, will begin accepting subscriptions for its Rs 1,900-crore initial public offering (IPO) on October 30.

The IPO, which closes on October 27, is solely an offer-for-sale by shareholders, including promoters, implying that the revenues will be distributed to the Rathod family.

The company will reveal the price band for the IPO, which will be the fourth to go public this month, on October 25, when the market reopens following the Dussehra holiday. The anchor book will be released on October 27.

Half of the issue size has been set up for qualified institutional buyers, with the remaining 15% designated for high-net-worth individuals. Retail investors will receive the remaining 35%.

As of June 2023, the corporation supplied 15,891 stock-keeping units (SKUs) throughout various product categories, with a presence in consumer houseware, writing tools & stationery, moulded furniture & allied items, and consumer glassware.

According to the company, it operates 13 manufacturing facilities spread across five countries and is establishing a glassware manufacturing facility in Rajasthan.

Approximately 80% of its revenue is generated by its in-house manufacturing operations, with the remainder (mostly steel and glassware products) manufactured by third-party contract manufacturers.

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Financial performance

The financial performance of Cello World has been solid, with the exception of a decline in the EBITDA margin.

Revenue increased by 32.2 percent to Rs 1,796.7 crore, while net income increased by 30.5 percent year-over-year to Rs 266.1 crore.

From the prior year to the current one, its earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 26% to Rs 420.54 crore. In contrast, the margin decreased by 110 basis points (bps) to 23.4 percent.

The unit of one-hundredth of a percentage point is one basis point.

The company’s net profit increased by 25.2 percent year-over-year to Rs 77.4 crore and revenue rose by 9 percent to Rs 471.8 crore in the first quarter of fiscal year 24. Comparatively to the previous year, EBITDA increased by 23% to Rs 119.2 crore, representing a margin expansion of 290 basis points at 25.3 percent.

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Allotment Date

Cello World will finalize the basis for allotment of shares by November 6 and credit shares in eligible investors’ demat accounts by November 8.

On November 9, the stock will be listed on the BSE and the NSE.

The issue’s merchant bankers are Kotak Mahindra Capital Company, ICICI Securities, IIFL Securities, JM Financial, and Motilal Oswal Investment Advisors. The registrar is Link Intime India.

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