Cello World IPO opens today. Should you subscribe to the issue?
Most analysts advised investors to subscribe to the IPO over the company's strong brand identity and diverse product portfolio across different categories.
Cello World has developed a strong brand identity through effective brand advertisements and marketing campaigns, including «Cello – Companion for Life», «Cello – Rishta Zindagi Bhar Ka, among others.
»We believe the company would be a prominent player in its respective business verticals with a large addressable market growth of an average 16%. The strong financials and debt-free nature of the company offer a growth play in the long term.
Therefore, we recommend a Subscribe to the issue," said Reliance Securities.
The issue, which closes on November 1, is completely an offer for sale worth Rs 1,900 crore. Net proceeds from the IPO will entirely go to the selling shareholders.
The company has fixed a price band of 617-648 per share for its offer.
Investors can bid for a minimum of 23 shares in one lot and in multiples thereafter.
Under the OFS, promoters Pradeep Ghisulal, Pankaj Ghisulal Gaurav Pradeep and selling shareholders Samgeeta Pradeep, Bibita Pankaj, Ruchi Gaurav Rathod will offload their partial stakes in the company.
About 50% will be available for allocation to qualified institutional buyers, 15% for non-institutional investors and 35% for retail investors. The IPO also includes a reservation of up to Rs 10 crore for subscriptions by eligible employees.
«We believe Cello World IPO offer gives investors an opportunity to invest in a renowned Indian consumer product company with 60-plus years of experience,» said Mehta Equities.
Cello World's business is broadly divided into two categories, consumer houseware and consumer glassware.
