The Cello World IPO has garnered strong demand from the investors community on the final day of subscription, November 1, receiving bids for 85.83 crore equity shares so far, which is 38.9 times the IPO size of 2.2 crore equity shares.
Qualified institutional buyers, who have 50 percent reservation in the offer, provided support to the issue with buying 108.57 times the allotted quota, while the part set aside for high networth individuals, which is 15 percent of the net offer, was subscribed 24.42 times.
Retail investors have bid 3.06 times the reserved portion, which is 35 percent of the net issue, while employees have bought 2.60 times their quota.
The consumer products company has reserved Rs 10 crore worth of shares for its employees, which will be given at a discount of Rs 61 each to the final offer price. The issue, excluding the employee portion, is the net offer.
Also read: Cello World IPO gets thumbs up from brokerages: Should you buy into Rs 1,900-cr issue?
The price band for the IPO, which was opened on October 30, is Rs 617-648 per share.
The Mumbai-based firm intends to mobilise Rs 1,900 crore via maiden public issue that comprises only an offer-for-sale (OFS) by the promoters, i.e. Rathod family.
Hence, the final issue proceeds, excluding IPO expenses, will be received by the promoters.
On November 27, Cello World, a prominent player in India's consumer-ware market, has raised Rs 567 crore from anchor investors. Morgan Stanley, Nomura, Goldman Sachs, HSBC, Florida Retirement System, Aditya Birla Sun Life Trustee, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Tata Mutual Fund, and HDFC Life Insurance Company are some of the investors participated in the company's anchor book.
Also Read Moneycontrol's Exclusive Note on Cello World IPO
The firm in consultation with NSE will finalise the basis of allotment of IPO shares by November 6 and will transfer equity shares to the demat accounts of successful investors by November 8.
Cello World shares will be available for trading on the bourses, with effect from November 6, the T+3 timeline, as per IPO schedule.
Investors in the grey market seem to be remained optimistic on the company that has a presence in the consumer houseware, writing instruments and stationery, and moulded furniture and allied products and consumer glassware categories, as IPO shares traded at 20 percent premium over the upper price band, analysts on anonymity said.
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The grey market is an unofficial platform for trading in IPO shares till the listing. Generally, the participants look at grey market premium to know the possible listing price of the issue.
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