Cello World, a leading Indian consumerware maker, is set to debut on the stock exchanges today, November 6, 2023. The company’s initial public offering (IPO) was subscribed 38.9 times, with strong demand from institutional investors. Experts predict a strong debut for the stock, with a listing premium of 22-25%.
Cello World is a leading manufacturer and seller of a wide range of consumerware products, including kitchenware, tableware, homeware, and appliances. The company has a strong brand presence and a wide distribution network across India. It also exports its products to over 70 countries.
The IPO was an offer-for-sale (OFS) of up to 2.93 crore equity shares, aggregating to Rs 1,900 crore. The price band for the IPO was fixed at Rs 617-648 per share.
Analysts are bullish on the Cello World IPO, citing the company’s strong brand presence, wide distribution network, and healthy financial performance. The company has reported strong revenue and profit growth in recent years.
Factors driving a strong debut
- Strong demand from institutional investors: The Cello World IPO was subscribed 38.9 times, with strong demand from institutional investors. This suggests that there is a lot of interest in the stock from large investors, which is a positive sign for the listing.
- Positive market sentiment: The Indian stock market has been in a positive mood in recent months, which is also likely to support the listing of Cello World.
- Good fundamentals: Cello World has strong fundamentals, with a healthy financial performance and a wide distribution network. This makes the stock attractive to investors.
Grey market premium
The Cello World stock was commanding a premium of Rs 160-165 per share in the grey market ahead of the listing. This suggests that investors are expecting the stock to list at a premium of 22-25%.