Cellecor Gadgets shares jumped 5 percent and hit the upper price band minutes after listing at the IPO price of Rs 92 on September 28 on the NSE SME platform.
The company’s grey market premium (GMP) was at Rs 50, implying a listing price of Rs 142, after the public issue received a good response from investors with 116.33 times subscription and the retail portion was booked 124.08 times.
The Cellecor Gadgets IPO opened for subscription on September 15 and closed on September 20. The company raised Rs 50.77 crore from the issue. The price band for the issue was fixed at Rs 87-92. The offer was an entirely fresh issue and there was no offer-for-sale component.
The company will use the IPO proceeds for working capital requirement amounting to Rs 40 crore and the remaining for general corporate purposes.
The company reported a net profit of Rs 7.97 crore for the financial year ended March 2023, rising sharply from Rs 2.14 crore a year ago. Revenue from operations jumped to Rs 264.35 crore from Rs 121.3 crore during the same period.
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After the issue, promoters' shareholding in the company reduced from 69.95 percent to 51.54 percent, while public shareholding increased to 48.46 percent from 30.05 percent.
Tano Investment Opportunities Fund managed by Tano Capital LLC is the largest shareholder in the company with 18.64 percent stake after promoter Ravi Agarwal.
Narnolia Financial Services was the book-running lead manager of the issue and Skyline Financial Services Private was the registrar. The market-makers were SS Corporate Securities and Kantilal Chhaganlal Securities.
Ravi Agarwal-promoted Cellecor Gadgets is engaged in the procurement, branding, and distribution of televisions, mobile phones, smart wearables, mobile accessories, smart watches, and neckbands, with a network of over 1,200 service centres, and more than 800 distributors along with a product presence in over 24,000 retail stores. It has more than 300 products which are being sold under its flagship brand, Cellecor.
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