Cello World IPO Details 

Cello World is one of the leading consumerware companies in India with a product portfolio in diverse categories like consumer houseware, kitchenware, moulded furniture and writing instruments and stationery with various allied product categories.

However, Cello World earns around 79% of its total revenue from its in-house manufacturing operations as of FY23. While, for most of the steel and glassware products, the company is relying on outsourcing to third-party contract manufacturers. 

To meet the demand of its customers Cell World has installed an annual capacity of 57.77 million units of consumer houseware products per annum,  650.00 million units of writing instruments and stationery products per annum, 15,000 tonnes of opalware and glassware per annum and 12.80 million units of moulded furniture and allied products.

Cello World is offering a wide range of 15,841 stock-keeping units spanning its various product categories. All its products are manufactured at its 13 manufacturing facilities that are spread across the five locations - Baddi (Himachal Pradesh), Daman, Haridwar (Uttarakhand); Kolkata (West Bengal) and Chennai (Tamil Nadu) as of March 31, 2023.

Cello World IPO Objectives

Cello World comes with the public issue to raise the fund of around Rs. 1,750 crore. One of the objectives of bringing this IPO is to provide the opportunity for promoters and shareholders to reduce their stakes and earn a return through an offer for sale.

Another objective of this Cello World IPO is to achieve the benefits of listing the equity shares on the stock exchanges, with the motive to enhance its brand image and make its shares public ally available for trading in the stock market.

Cello World IPO Issue Price & Size

The Cello World IPO issue price is not known as the price is not declared by the company. However, the total size of the issue will be around Rs 1,750 crore.

The Cello World IPO comprises an offer for sale by the promoters in the breakdown of Rs 670 crore by Pankaj Ghisulal Rathod, Rs 300 crore by Pradeep Ghisulal Rathod, up to Rs 380 crore by Gaurav Pradeep Rathod, up to Rs 200 crore by Sangeeta Pradeep Rathod, and up to Rs 100 crore each by Babita Pankaj Rathod and Ruchi Gaurav Rathod.

Cello World IPO Launch Date

The launch date of Cello World IPO has not been declared yet by the company, hence right now it is known to anyone. As soon as the Cello World IPO launch date is declared by the company it will be updated here with all other details declared by the company.

Cello World Financial Performance

The revenue from operations of the Cello World registered a CAGR of 30.84% from FY21 to FY23 at Rs. 1796.70 crore from 1049.45 crore in FY21. However, owing to the increase in operating expenses compared to revenue growth, the operating income of the company grew at a CAGR of 23.46% during the same period but the company has still maintained its EBITDA Margins.

The EBITDA stood at Rs 437.28 crore in FY23 from Rs 286.87 crore in FY21. Because of these higher operating expenses, the operating margins of the Cello World went slightly down standing at 24.34% in FY23 from 27.34% in FY21.

The Net Profit of the company stood at Rs 285.06 crore in FY23 which grew at a CAGR of 31% from Rs 165.55 crore in FY21. However, despite the rise in the depreciation and tax Liabilities Company has maintained its Net Profit margins at 15.87% which is slightly down from FY22 but almost the same from FY21. Owing to the better profit margins the earnings per share of the company has improved to Rs 13.65 from Rs 7.75 in FY21 giving the encouraging returns on the equity.

Cello World IPO Promoters & Shareholding of the Company

Gaurav Pradeep Rathod, Pankaj Ghisulal Rathod and Pradeep Ghisulal Rathod are the promoters of Cello World. At the time of filing the DRHP with SEBI, these top three key promoters are holding 28%, 18% and 14% stakes in the company.

While the other eight family members hold the remaining portion of shares in the company. However, owing to the conversion of preference shares issued to Advantage Fund S4& S5 I and Tata Capital Growth Fund II into equity shares the shareholdings of all the promoters are diluted by 7.66% reducing the stakes of all the shareholders accordingly.