Cello World launches QIP, floor price at Rs 896.09 per share

Shares of Cello World ended 7 percent higher at Rs 968 on the National Stock Exchange (NSE) in the previous session.

Cello World has launched a qualified institutional placement (QIP) offering of equity shares of face value Rs 5 each. The floor price for the issue has been fixed at Rs 896.09 per share, a discount from the previous closing price of Rs 901.05, according to an exchange filing on July 4.

The fund raise comes just eight months after the company listed on the stock exchanges following a Rs 1,900-crore initial public offering (IPO) which saw company’s promoters and investors sell their shares in an offer for sale (OFS).

ICICI Ventures had invested Rs 360 crore in Cello World in November 2022.

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The company plans to use the funds for various purposes including repayment of debt, capital expenditure to augment its manufacturing facilities, funding its growth plans as well as for working capital requirements.

The other important reason for the QIP is to bring down the promoter stake in the company to 75 percent to meet the Securities and Exchange Board of India (SEBI) minimum public shareholding norms, sources told Moneycontrol earlier this week.

Under these norms, all newly listed companies need to achieve a minimum public shareholding of 25 percent in three years from listing.

In the previous session, Cello World shares ended 7.4 percent higher at Rs 968 on the National Stock Exchange. The company had sold its shares in the IPO at Rs 648 apiece in November last year. Currently, the stock is trading, up 49 percent from the issue price.

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