The IPO of Cello World Limited, valued at Rs 1,900.00 crores, was a book-built issue comprising 2.93 crore shares offered solely for sale. Bidding for the IPO commenced on October 30, 2023, concluding on November 1, 2023. Allocation of shares for the Cello World Limited IPO was determined on Thursday, November 2, 2023. Subsequently, the shares were listed on both the BSE and NSE on November 6, 2023

The IPO price range for Cello World Limited is established between ₹617 and ₹648 per share. Retail investors need to invest a minimum of ₹14,904, with a minimum lot size of 23 shares per application. Substantial Non-Institutional Investors (sNII) are required to invest a minimum of ₹208,656 for 14 lots (322 shares), while Big Non-Institutional Investors (bNII) must invest at least ₹1,013,472 for 68 lots (1,564 shares). The offering comprises a reservation of up to 170,357 shares for employees, with a discount of Rs 61 from the issue price.

Kotak Mahindra Capital Company Limited, ICICI Securities Limited, IIFL Securities Ltd, JM Financial Limited, and Motilal Oswal Investment Advisors Limited serve as the book running lead managers for the Cello World Limited IPO, with Link Intime India Private Ltd appointed as the registrar for the offering.

Link for RHP: RHP

Link for DRHP: DRHP

The offer is completely “offer for sale”.

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About Cello World Limited

The company deals in THREE sectors.

1. Consumer ware Market:

• Consumer houseware
• Consumer glassware

2. Writing instruments and stationery
3. Moulded furniture and allied products

Company deals under the brands: CELLO and UNOMAX.

Company has various sub brands as well: Puro, Chef, H2O, Modustack, Kleeno, Maxfresh and Duro, Ultron2X and Geltron. Company was incorporated only in 2018, former promoter Late Ghisulal Dhanraj Rathod, father of two of Promoters, Pradeep Ghisulal Rathod and Pankaj Ghisulal Rathod, was associated with Cello Plastic Industrial Works (“CPIW”) and the “Cello” brand since 1962. Promoters have 6 decades of experience in industry which enabled them to understand the needs and preferences of consumers and diversify product portfolio.

The industry of the company is as discussed:

1. Indian Retail Market:

The Indian retail market as a whole has historically been characterized as largely fragmented and unorganized. In FY 2015, the total retail market in India stood at USD 461 Bn. In FY 2022, the total retail market reached a value of USD 844 Bn whereas the organized retail market had a value of USD 109 Bn, contributing to ~13% of the total retail market in India. By FY 2027, the values for total retail and organized retail are expected to reach USD 1,418 Bn and USD 325 Bn respectively, exhibiting CAGR of ~11% and 24% for total and organized retail respectively from FY 2022 to FY 2027.

2. Consumerware Market:

• Global:

The Global Consumerware market was valued at USD 106 Bn in CY 2022. This market has witnessed a steady growth over the years with market size increasing from to USD 98 Bn in CY 2020 to USD 106 Bn, growing at a CAGR of 4%. Consequently, the market size is expected to reach USD 142 Bn in CY 2027 from USD 110 Bn in CY 2023 growing at a CAGR of 6.6%.

• Indian:

This market was valued at INR 348 Bn in FY 2022. This market has witnessed steady growth over the years with market size increasing from INR 305 Bn in FY 2020 to INR 348 Bn FY 2022 growing at a CAGR of 6.9% and INR 565 Bn in FY 2027 growing at a CAGR of 10.2% for the period FY 2022-2027.

Consumer Houseware: Hydration, Cookware, Insulated Ware, Lunchboxes, Storage Containers, Melamine, Small Kitchen Appliances and Cleaning Products.

The Indian Houseware Market was valued at INR 318 Bn in FY 2022. The market size grew at a CAGR of 6.6% from market size of INR 280 Bn in FY 2020. The market is expected to continue growing at the rate of 10.0% in 2023 to reach INR 343 Bn. By 2027, the market is expected to reach INR 502 Bn, with a CAGR of 9.6% over the five-year period

Consumer Glassware: Opalware, Glassware and Porcelain.

The Indian Glassware Market was valued at INR 31 Bn in FY 2022. The market size was INR 15 Bn in FY 2015, and it experienced a CAGR of 11.6% to reach INR 25 Bn in FY 2020. The market is projected to continue growing, with an estimated CAGR of 10% from FY 2020 to FY 2022, and a further expected growth rate of 12.1% in 2023. By FY 2027, the market is expected to reach INR 63 Bn, with a CAGR of 15.5% over the five-year period.

3. Stationery:

The Indian stationery market has exhibited consistent growth over the years, with a market value of INR 244 Bn in FY 2015, which increased to INR 330 Bn in FY 2020, representing a CAGR of 6%. However, the market witnessed a substantial sales dip in FY 2021 due to Covid. The overall stationery market bounced back at a rate of 35% in FY 2022 due to revival in demand post reopening of schools, colleges, and resumption of work from office mode. As of FY 2023, the Indian stationery market had an estimated size of INR 385 Bn by value and is expected to grow at a CAGR of ~14% during FY 2023-27 period to reach a market value of INR 657 Bn by FY 2027.

4. Indian Writing Instrument Market Size:

Writing instrument market in India comprises of pens, pencils and markers and highlighters. It has exhibited continuous growth over the years, with a market value of INR 66 Bn in FY 2015, which increased to INR 101.5 Bn in FY 2020, representing a CAGR of 9%. However, the market witnessed a slight dip in sales from FY 2020 to FY 2022. As of FY 2023, the Indian writing instrument market had an estimated size of INR 133.5 Bn by value and is expected to grow at a CAGR of ~16% during FY 2023-27 period to reach a market value of INR 244.6 Bn by FY 2027.

5. Indian Plastic Moulded Furniture Market:

Involves shaping plastic into specific designs and forms, resulting in furniture pieces that have a uniform and consistent appearance. The plastic moulded furniture market in India was valued at INR 68 Bn in 2015. Over the next five years, the market size grew at a CAGR of 10.8%, reaching INR 113 Bn in FY 2020. The market was valued at INR 122 Bn in FY 2022 (almost entire Plastic furniture is moulded and is expected to reach INR 270 Bn by FY 2027 growing at a CAGR of 17.3%.

Risk Analysis for the company:

1. Fluctuations in prices and availability of raw material s such as plastic granules and plastic polymer may affect.
2. The company is dependent on distribution network in India and overseas to sell and distribute products. Apart from this the company also relies on third-party contract manufacturers for some products.
3. The company do not own the trademark for key brands, including "Cello", "Unomax", "Kleeno", "Puro" and their respective logos. Company is adversely impacted by sale of counterfeit products and passing-off which may reduce sales.
4. It deals in a highly competitive and seasonal market which forces them to increase advertising expenditure or provide goods at lower cost. Company needs to comply with changes in Safety, Environmental and Labor laws.
5. There could be delays in the construction of a glassware manufacturing facility in Rajasthan which is expected to be ready by FY25.
6. The company had issued Equity Shares during the preceding one year at a price that may be below the Offer Price.
7. Registered Office and certain manufacturing facilities are situated on lands/in buildings are not owned by company. 
8. Company has availed unsecured loans from Promoters and members of Promoter Group that are recallable, at any time.