Cello World QIP: Shares rally 6.5%, hit record high as Co fixes floor price

Cello World QIP update: Cello World has launched fund raise via QIP route at a floor price of Rs 896 per share

Cello World QIP: Cello World share price surged 6.5 per cent to hit a fresh record high of Rs 1,024 per share on the BSE in Thursday’s intraday trade. At 12:40 PM, Cello World stock was trading 4.2 per cent higher at Rs 1,002 per share as against 0.27 per cent gain in the benchmark Sensex index.

The rally in Cello World share price comes after the QIP Committee of the company initiated the fund raise process, via the Qualified Institutional Placement (QIP) route, at a floor price of Rs 896 per share.

“The company may, at its discretion, offer a discount of not more than 5 per cent on the Floor Price for the Issue. The Issue price will be determined by the company in consultation with the book running lead managers appointed for the Issue,” it said in its exchange filing on Wednesday, July 3.

According to reports, Cello World is looking to raise over Rs 700 crore via the QIP. This could be at an indicative issue price of Rs 852 per share.

The issuance of additional shares for the QIP, the report added, would result in an equity dilution of around 4 per cent based on the pre-issue outstanding equity share capital.

Cellow World debuted in the stock markets on November 6, 2023. The shares got listed at Rs 831 as against the issue price of Rs 648 per share. With today’s rally, Cello World shares are ruling 58 per cent higher over their issue price.

Mumbai-based Cello World has a product portfolio across three key categories -- consumer houseware, writing instruments and stationery, and moulded furniture and related products. In 2017, it ventured into the glassware and opal ware business under the 'Cello' brand.

For the March quarter of FY24, Cello World reported a 6 per cent quarter-on-quarter (Q-o-Q) rise in its net profit at Rs 96.11 crore. The company’s consolidated total income for the quarter, meanwhile, slipped 2.34 per cent Q-o-Q to Rs 519.09 crore.

For the financial year 2023-24 (FY24), Cello World’s net profit rose 25 per cent year-on-year (Y-o-Y) to Rs 356.18 crore. Total income surged 11.68 per cent Y-o-Y to Rs 2,025 crore, while operating Ebitda improved by 21 per cent to Rs 509.23 crore.