Cello World to Introduce Rs 1,750 Crore IPO: A Deep Dive into the Company’s Journey
Cello World has charted its course towards raising capital through a prominent Initial Public Offering (IPO). The company has taken a significant step by submitting the Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). With the potential to raise Rs 1,750 crore, Cello World’s IPO is set to draw attention from investors and industry enthusiasts alike.
Diving into the specifics, Cello World, a stalwart in the domain of household consumer products, has positioned itself as a key player in the Indian market. Notably, the IPO is structured as a complete Offer for Sale (OFS), with prominent shareholders from the Rathore family divesting their stakes. Pradeep Ghisulal Rathore, Pankaj Ghisulal Rathore, Gaurav Pratap Rathore, Sangeeta Pratap Rathod, Babita Pankaj Rathod, and Ruchi Gaurav Rathod are collectively participating in the OFS.
Cello World’s diverse product portfolio ranges from drinkware and opalware to kitchen appliances, cleaning aids, bathroom accessories, and sanitizers. Competing in the dynamic household consumer products sector, the company faces off against well-established giants such as Milton, La Opala, and Borosil. The company, headquartered in Mumbai, traces its beginnings to 1967 when it embarked on its journey with a small factory producing PVC footwear and bangles.
Currently, Cello World boasts an extensive range of 15,841 stock keeping units across various product categories. The company’s operations span across 13 manufacturing facilities dispersed over five strategic locations in India. Despite a marginal dip in its EBITDA margin, Cello World demonstrated robust financial performance. In the financial year 2023, the company recorded revenue of Rs 1,796.70 crore, marking a substantial increase from Rs 1,359.18 crore in the previous year. Moreover, its profit for FY23 stood at Rs 285.07 crore, displaying a significant growth from Rs 219.52 crore in the preceding year.
The IPO is being steered by lead managers including Kotak Mahindra Capital, ICICI Securities, JM Financial, Motilal Oswal Securities, and IIFL Securities. As Cello World embarks on this pivotal journey, its trajectory serves as a testament to its evolution from a humble PVC footwear and bangles manufacturer to a diversified consumer products powerhouse.