Cello World fell 3.35% to Rs 846.60 on profit selling after a recent rally.
Shares of Cello World jumped 9.45% in the past three trading sessions.The stock entered the stock exchanges on 6 November 2023. The scrip was listed at Rs 831, exhibiting a premium of 28.24% to the issue price of Rs 648. It is currently up 31% over its listing price.
A domestic broker recently initiated coverage on Cello World with a 'Buy' rating and a target price of Rs 1,100. The brokerage anticipates that the company will outpace industry growth.
The initial public offer (IPO) of Cello World was subscribed 38.90 times. The issue opened for bidding on 30 October 2023 and it closed on 1 November 2023. The price band of the IPO was fixed at Rs 617-648 per share.
The offer comprised an offer for sale of up to 2,93,20,988 equity shares. The offer also includes a reservation for a subscription by eligible employees and a discount of Rs 61 per equity share is being offered to eligible employees bidding in the employee reservation portion.
The company did not receive any proceeds from the offer. All the offer proceeds (net of any offer related expenses to be borne by the selling shareholders) were received by the respective selling shareholders, in proportion to the equity shares offered by them in the offer for sale.
Cello World is a prominent player in the consumerware market in India with presence in the consumer houseware, writing instruments and stationery, and moulded furniture and allied products and consumer glassware categories. The company operates 13 manufacturing facilities across five locations in India and are currently establishing a glassware manufacturing facility in Rajasthan.
The company reported a net profit of Rs 84.9 crore and revenue from operation of Rs 527.1 crore for the three months ended on 31 December 2023 (Q3 FY24). EBITDA stood at Rs 136.6 crore while the EBITDA margin stood at 25.9%.
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