Cello World IPO Allotment Status Announced; The gray market premium increases before listing

Cello World announced the basis for allotment of its shares ahead of listing on Monday. The company will debut on the stock market on November 6, 2023. The pan-India consumer goods maker’s initial public offering (IPO) had received strong response during the bidding process, especially from institutional investors.

The Cello World issue was sold in the price range of Rs 617 to Rs 648 per piece, with a lot size of 23 shares. The issue was strictly an offer for sale (OFS) of up to 2.93 crore shares, totaling Rs 1,900 crore. The IPO ran from October 30th to November 1st. The IPO was subscribed a total of 38.9 times.

The portion reserved for qualified institutional bidders (QIBs) was booked at an outstanding 108.57 times while the portion reserved for non-institutional investors was bid at 24.42 times. The quota reserved for private investors and employees was subscribed 3.06 times and 2.60 times during the three-day bidding process.

Cello World’s gray market premium (GMP) has improved in recent days. It was last reported that the company fetched a premium of Rs 160-165 per share, indicating a stock market gain of around 25 percent over the issue price of Rs 648 per share.

Cello World is a pan-India consumer goods company that primarily trades in three categories namely writing instruments and stationery, molded furniture and homeware. Cello has more than six decades of experience in the consumer products industry.

Many brokerage firms had suggested Subscribe on this topic citing strong brand recall, pan-India presence, growth potential and solid historical track record. That said. The main concerns were the nature of the OFS and the lack of patents and trademarks for its brand.

The issue was managed by IIFL Securities, Kotak Mahindra Capital, ICICI Securities, JM Financial and Motilal Oswal Investment Advisors while Link Intime India acted as the registrar for the issue. Cello World shares will debut on both the BSE and NSE.

Investors bidding for the Cello World issue can check the allotment status on the IPO application verification page of the BSE website. Check in Equity, select “Cello World Limited” from Dropbox under “Issue Type”. An applicant has to enter the application number, add the PAN card details and tick the “I am not a robot” box before clicking on the “Submit” button.

The quota status can also be checked via the online portal of Link Intime, the registrar for the issue. Visit the Link Intime web portal and select Cello World IPO in the dropbox. One may need to select either the application number, demat account number or PAN ID. Enter the details of the mode selected in the previous tab, fill the captcha correctly and click “Submit”.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are advised to consult a qualified financial advisor before making any investment decision.