© Reuters.
Cello World Limited, an Indian consumer goods company, made a strong debut on the Bombay Stock Exchange (BSE) with its shares trading at a 28.24% premium over their ₹648 IPO price. The Initial Public Offering (IPO), valued at ₹1,900 crore ($25.6 billion), was oversubscribed by 38.90 times, demonstrating substantial interest from Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs).
The company successfully raised ₹567 crore from anchor investors including ICICI Prudential Life Insurance Co., SBI Life Insurance Co., HDFC Mutual Fund, Aditya Birla Sun Life Insurance Co., BNP Paribas (OTC:) Arbitrage, Morgan Stanley, Nomura, Motilal Oswal, Edelweiss, and Goldman Sachs by allotting shares at ₹648 each.
The IPO had an offering price band set at ₹617 to ₹648 per equity share with market analysts predicting a listing gain of ₹150 to ₹180 per share. The shares started trading in a special pre-open session and were available for trade from 10:00 AM under the ‘B’ Group of Securities.
Market analysts attributed the positive investor response to Cello World’s robust fundamentals and its position in high-growth sectors such as Consumer Houseware, Writing Instruments and Stationery, and Moulded Furniture and Allied Products. The company’s strong market presence, extensive product range, established brand reputation, and its 13 manufacturing facilities across India have further boosted investor optimism. Moreover, Cello World is currently establishing a new glassware manufacturing facility in Rajasthan.
The grey market activity ahead of the listing also signaled a strong debut for Cello World. The shares traded at a premium of ₹160 per equity share in the grey market. The Grey Market Premium (GMP) stood at ₹160, hinting at an expected IPO listing price of around ₹808 per share.
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