Tano Capital-backed Cellecor Gadgets IPO to be launched on Sept 15, fund raising at Rs 50.77 crore

Tano Capital-backed Cellecor Gadgets IPO to be launched on September 15

Cellecor Gadgets IPO is going to be open for subscription on September 15 with a fundraising plan of Rs 50.77 crore. This would be the third SME launching a public issue next week after Chavda Infra and Kundan Edifice.

The initial public offering of 55.18 lakh equity shares, which comprises only fresh issue components, will be closing on September 20. The anchor book, a part of QIB, will be opened for a day on September 14.

The price band for the offer, which will constitute 26.32 percent of the post-issue paid-up equity, has been fixed at Rs 87-92 per share.

Investors' Reservation

The Delhi-based electronic gadgets maker has reserved 2.76 lakh equity shares worth Rs 2.54 crore for the market maker. The remaining 52,42,800 shares come under the net issue component.

Of the net issue, the 50 percent portion, i.e. 26,21,400 shares, is reserved for qualified institutional buyers. The remaining 15 percent component (7,86,420 shares) is reserved for high networth individuals (HNIs) and 35 percent (18,34,980 shares) for retail investors.

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Investors can make an application for a minimum of 1,200 shares and in multiples of 1,200 shares thereafter. Retail investors can invest only Rs 1,10,400 for 1,200 shares, i.e. one lot, as they cannot exceed the investment limit of up to Rs 2 lakh, while HNIs can apply for a minimum of 2,400 shares worth Rs 2,20,800 as their minimum investment starts with Rs 2 lakh.

Utilisation of fund

The company will make use of fresh issue proceeds for working capital requirement amounting to Rs 40 crore and the remaining for general corporate purposes and IPO-related expenses.

Cellecor 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.
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It has more than 300 products which are being sold under its flagship brand, CELLECOR.

Financial Performance

Ravi Agarwal-promoted Cellecor Gadgets has recorded a net profit of Rs 7.97 crore for the financial year ended March FY23, rising sharply from Rs 2.14 crore in the previous year, and revenue from operations more than doubled to Rs 264.35 crore, increasing from Rs 121.3 crore during the same period.

Promoters' shareholding in the company will be reduced from 69.95 percent pre-issue to 51.54 percent post-issue, while the public shareholding will increase to 48.46 percent from 30.05 percent post-issue.

Tano Investment Opportunities Fund, the fund managed by the California-headquartered alternative investment firm Tano Capital LLC, is the largest shareholder in the company with 18.64 percent stake after promoter Ravi Agarwal.

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Listing Date

The finalisation of basis of allotment of IPO shares by the company in consultation with the NSE will take place by September 25 and the equity shares will be credited to demat accounts of eligible investors by September 27. The refunds will be credited to the bank accounts of unsuccessful investors by September 26/

The trading in equity shares of the company will commence on the NSE Emerge with effect from September 28, as per the IPO schedule.

Narnolia Financial Services is the merchant banker to the offer and Skyline Financial Services is the registrar.