Cello World shares make a strong D-St; lists at 28% premium at Rs 831 on BSE

Shares of Cello World Ltd made a strong debut at Dalal Street on Monday as the consumer ware player was listed at Rs 831, a premium of 28 per cent, over its issue price of Rs 648 on the BSE. The stock was listed at a premium of 28 per cent at Rs 829 on National Stock Exchange (NSE) over the given issue price. Listing on Cello Price has been in-line/better than expected as signaled by the grey market premium. Ahead of listing, Cello World was commanding a premium of Rs 160 apiece in the unofficial market, signaling a listing pop of 25 per cent over the given issue price. The grey market premium has remained stable since the closure of the issue. Cello World raised a total of 1,900 crore via its initial stake sale, which was entirely an offer-for-sale (OFS) up to 2.93 crore by its promoters and other selling shareholders. The company sold its shares in the range of Rs 617-648 apiece with a lot size of 23 equity shares between October 30 and November 1. The issue was overall subscribed 38.9 times during the three-day bidding process. The quota for qualified institutional bidders (QIBs) was booked a whopping 108.57 times, while the portion set aside for non-institutional investors saw 24.42 times bidding. The allocation reserved for retail investors and employees was subscribed 3.06 times and 2.60 times, respectively. Cello World is a well-known pan-India consumer product company. It mainly deals in three categories- writing instruments and stationery, molded furniture, consumer housewares. Cello World has an experience of more than six decades in the field of consumer product industry. It has 13 manufacturing units situated in 5 different locations in India. Kotak Mahindra Capital Company, ICICI Securities, IIFL Securities, JM Financial and Motilal Oswal Investment Advisors were the book running lead managers, while Link Intime India was the registrar for the issue.