Cello World Limited IPO 2023

Cello World, a renowned Indian consumer product company, specializes in writing instruments, stationery, molded furniture, consumer housewares, and related items. With over 60 years of industry expertise, they grasp consumer preferences effectively. The company operates 13 manufacturing units across 5 locations in India and plans to establish a glass manufacturing unit in Rajasthan, equipped with European machinery for efficient production. As of March 31, 2023, Cello World offers 15,841 stock-keeping units and maintains a national sales distribution team of 683 members. 

Cello World Limited-Journey

The company was originally incorporated as 'Cello World Private Limited' on July 25, 2018, under the Companies Act, 2013. Following this, the company relocated its registered office from Maharashtra to the Union Territory of Daman and Diu, with a certificate of registration issued by the RoC on April 8, 2020. Later, on June 12, 2023, the shareholders passed a special resolution to convert the company into a public limited company, leading to a name change to 'Cello World Limited' and a fresh certificate of incorporation issued by the RoC on July 18, 2023.

 The Retail and consumerware industries in India

In the fiscal year 2022, the retail market in India reached a total value of USD 844 billion. Among these, the organized retail market accounted for USD 109 billion, making up approximately 13% of the total retail market. Looking ahead to the fiscal year 2027, it is anticipated that the total retail market will grow to USD 1,418 billion, with organized retail reaching USD 325 billion. This represents a compound annual growth rate (CAGR) of around 11% for the total retail market and 24% for the organized retail sector from FY 2022 to FY 2027.

In FY 2022, the Indian consumerware market reached a value of INR 348 billion. It has demonstrated consistent growth, expanding from INR 305 billion in FY 2020 to INR 348 billion in FY 2022, showcasing a compound annual growth rate (CAGR) of 6.9%. Projections indicate a continued upward trajectory, with an expected value of INR 565 billion in FY 2027, growing at a CAGR of 10.2% during the period FY 2022-2027. 

This surge is powered by elements like:

• rising disposable income

• the trend toward smaller families, and 

• increased demand for organized and practical kitchen spaces.

Cello World Limited IPO Details

Cello World Limited is launching its IPO, offering 2.93 crore shares.  Cello World Limited IPO Share price range of Rs. 617 to Rs. 648 The book built issue amounts to Rs 1,900.00 crore and opens for subscription on October 30, 2023, closing on November 1, 2023. The IPO allotment is scheduled for November 6, 2023, with listing on BSE and NSE planned for November 9, 2023. Retail investors can enter with a minimum investment of Rs 14,904.

Purpose of Cello World Limited IPO Issue

• Realize the advantages of listing equity shares on stock exchanges, leading to an improved brand image and enabling public trading of shares.

• Generate returns for investors through the offer-for-sale mechanism.

Cello World Limited IPO Issue Key Dates:

Cello World  Limited IPO Lot Size

Cello World Ltd. Investment Potential:

Qualitative Factors:

• Established brand and robust market presence.

• Diverse product ranges meet varied consumer needs and budgets.

• Proven ability to expand into new businesses and product lines.

• Extensive nationwide distribution through multiple channels.

• Expertise in manufacturing diverse products and managing inventory effectively.

• Experienced and skilled leadership.

• Impressive track record of financial performance.
  

Quantitative Factors:

Key Performance Indicator

 

Risk Factors:

In addition to the mentioned strengths, Cello World Limited faces certain risks that could impact its business:

• Fluctuations in Raw Material Prices: Cello World Limited's business, operations, financial condition, and cash flow are susceptible to fluctuations in prices of raw materials such as plastic polymers and plastic granules.

• Dependency on Distributors: The company heavily relies on its network of distributors for product distribution within India and overseas. Any disruption in this network could adversely affect the company's revenue and cash flow.

• Reliance on Third-party Manufacturers: Cello World Limited depends on third-party contract manufacturers for certain products, exposing the company to risks that could adversely affect its business operations.

In conclusion, Cello World Ltd. (CWL) is a prominent player in India's consumer ware market, spanning various categories like consumer houseware, writing instruments, stationery, molded furniture, and glassware. With 15,891 diverse products under the "Cello" and "Unomax" brands, CWL operates 13 manufacturing facilities across India and is expanding further, including a new glassware facility in Rajasthan.

The company boasts a strong nationwide presence through 717 distributors, 58,716 retailers for housewares, 29 Super Stockists, 1,509 distributors, 60,826 retailers for writing instruments and stationery, and 1,067 distributors and 6,840 retailers for molded furniture. Additionally, it has a dedicated sales team of 721 members, supporting its extensive market reach.

As of June 30, 2023, CWL had 5,502 employees, underscoring its operational prowess. This robust foundation positions Cello World Ltd. as a promising prospect in the consumer ware industry, making its IPO an attractive opportunity for potential investors.

 

Frequently Asked Questions

1. Which product categories does Cello World Limited's business dominate?

Cello World Limited excels in product categories such as drinkware, lunchboxes, dinnerware, cleaning products, bakeware, jars and containers, and kitchen appliances.

2. What is the face value of the equity shares in the upcoming Cello World Limited IPO?

The face value for the equity shares in the Cello World Limited IPO has been set at Rs. 5 per share by the company and underwriters.

3. What notable awards has Cello World received?

Cello World Limited has garnered prestigious awards, including Outstanding Performance for 15 years, Most Trusted Brand for 6 years, Promising Brand, and Most Recognized Consumer Brand

4: What are the key dates for the Cello World Limited IPO?

The IPO is scheduled to open for subscription on October 30, 2023, closing on November 1, 2023. The IPO allotment is scheduled for November 6, 2023, with listing on BSE and NSE planned for November 9, 2023.

5: What is the Cello World Limited IPO Listing price?

The Cello World Limited IPO price stands between Rs 617 and Rs 648 per share.

 

Related Blogs

• IRM Energy Limited IPO 2023

• The Road to Public Ownership: Updater Services Limited's IPO

• JSW Infrastructure Limited IPO 2023

• Manoj Vaibhav Gems N Jewellers Limited IPO Insights

• Signature Global (India) Limited IPO 2023

• SAI SILK (KALAMANDIR) LIMITED'S IPO 2023

• Yatra Online Limited IPO September 2023

• IPO - Latest IPO, Upcoming IPO, Recent Closed IPO

• Initial Public Offerings IPO Account

Disclaimer: This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.