Cello World files draft IPO papers with Sebi to raise Rs 1,750 crore

Cello World Ltd has filed with the Securities and Exchange Board of India (Sebi) the draught documents for a public issue to raise Rs 1,750 crore.

The IPO will be a pure offer-for-sale, comprising up to Rs 300 crore by Pradeep Ghisulal Rathod, up to Rs 670 crore by Pankaj 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.

Gaurav Pradeep possesses a 25.73 percent stake in the company, while Pankaj Ghisulal and Pradeep Ghisulal hold 16.24 percent and 12.86 percent, respectively.

ICICI Venture, the alternative investment branch of ICICI Bank, supports the Mumbai-based company that competes with the likes of Milton, La Opala, and Borosil.

The issue's primary managers are Kotak Mahindra Capital, ICICI Securities, JM Financials, Motilal Oswal Securities, and IIFL Securities.

In 1967, the Rathod family founded a small factory in Mumbai to produce plastic PVC footwear and ornaments under the name Cello Group. It has a presence in categories ranging from drinkware, opalware, and kitchen appliances to cleaning aids, washroom accessories, and sanitizers, and its products are also utilised by hotels, restaurants, and caterers.

It offers 15,841 stock keeping units across product categories as of March 2023. It owns, leases, and operates thirteen manufacturing facilities across five locations in India with an annual installed capacity of 57.77 million units of consumer houseware products, 15,000 tonnes of opalware and glassware, 650.00 million units of writing instruments and stationery products, and 12.80 million units of moulded furniture and allied products.

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The company's revenue for FY23 increased to Rs 1,796.70 billion from Rs 1,359.18 billion the previous year, while its net profit increased to Rs 285.07 billion from Rs 219.52 billion. The EBITDA margin for the year decreased from 25.71 percent to 24.34 percent. The net debt decreased during the year from Rs 426.64 crore to Rs 304.49 crore.