Last Updated: November 06, 2023, 11:15 IST
Cello World shares listed at Rs 831, a premium of 28% on BSE.
Shares of Cello World Ltd made a robust debut on Monday as the patron ware participant was listed at Rs 831; Should you Hold or guide earnings?
Shares of Cello World Ltd made a robust debut at Dalal Street on Monday as the patron ware participant was listed at Rs 831, a premium of 28 per cent, over its challenge value of Rs 648 on the BSE. On the NSE, the shares of Cello World debuted at Rs 829, up 27.9 per cent over its challenge value.
Cello World raised a complete of 1,900 crore through its preliminary stake sale, which was fully a suggestion-for-sale (OFS) as much as 2.93 crore by its promoters and different promoting shareholders. The firm offered its shares within the vary of Rs 617-648 apiece with quite a bit measurement of 23 fairness shares between October 30 and November 1.
During the three-day bidding course of, the problem garnered a sturdy total subscription charge of 38.9 instances. Notably, the certified institutional bidders (QIBs) oversubscribed their allotted quota by a staggering 108.57 instances, whereas non-institutional buyers additionally displayed sturdy curiosity with a subscription charge of 24.42 instances.
Retail buyers and staff subscribed to their respective allocations at charges of three.06 instances and a couple of.60 instances.
Cello World is a nicely-recognized pan-India client product firm. It primarily offers in three categories- writing devices and stationery, molded furnishings, client housewares. Cello World has an expertise of greater than six many years within the area of client product trade. It has 13 manufacturing items located in 5 completely different places in India.
Kotak Mahindra Capital Company, ICICI Securities, IIFL Securities, JM Financial and Motilal Oswal Investment Advisors have been the guide working lead managers, whereas Link Intime India was the registrar for the problem.
Listing on Cello Price has been in-line/higher than anticipated as signaled by the gray market premium. Ahead of itemizing, Cello World was commanding a premium of Rs 160 apiece within the unofficial market, signaling an inventory pop of 25 per cent over the given challenge value. The gray market premium has remained secure for the reason that closure of the problem.
What Should Investors Do Now?
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, stated, “Despite the premium valuation, the IPO received a positive response from investors. This is likely due to the company’s strong brand recognition, diversified product portfolio, and pan-India presence.”
“After such a strong listing, investors may book profit; however, those who have a long-term investment horizon can keep a stop loss at 750,” Nyati added.
