Cello World Limited IPO

Apply 0
Avoid 0

1. Product Categories: The company operates in the consumerware market, which is divided into two main categories: consumer houseware and consumer glassware. They have a presence in both of these categories, and they have diversified their product range over the years.

2. Promoter’s Background: The company’s founders and promoters have a long history in the consumer products industry dating back to 1962. This experience has provided them with valuable insights into consumer preferences and needs in India.

3. Manufacturing Facilities: The company owns/leases and operates 13 manufacturing facilities in India. This allows them to manufacture a significant portion of their products in-house. This in-house manufacturing accounts for a substantial part of their revenue, providing them with economies of scale.

4. Supply Chain Management: The company has effective supply chain management, which helps optimize inventory levels and ensures that products are readily available to meet consumer demand.

5. Distribution Network: The company has a strong pan-India distribution network. They have a sales team to support this network and use an enterprise resource planning system to forecast production levels and manage inventory. They also have longstanding relationships with distributors and retailers.

6. Sales Channels: The company’s products are sold through various channels, including modern trade, export, e-commerce marketplaces, and their own websites. They also sell in bulk to corporate clients and government departments, diversifying their customer base.

7. Brand Building: The company places a strong emphasis on brand awareness and recall. They use various promotional and marketing efforts, including in-shop displays, advertisements in print and social media, and retail and product branding. They have developed a strong brand identity with memorable slogans and marketing campaigns.

8. Marketing Team: A dedicated marketing team manages and coordinates all marketing efforts to promote the company’s brands and sub-brands.

Objects of the Cello World Limited IPO:

The objectives of the Offer are to (i) achieve the benefits of listing the Equity Shares on the Stock Exchanges; and (ii) carry out the Offer for Sale of  Shareholders.
DRHP of Cello World Limited IPO
RHP of Cello World Limited IPO

Cello World Limited IPO Details:

Open Date: Oct 30 2023
Close Date: Nov 01 2023
Total Shares: 29,320,987
Face Value: ₹ 5 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 1,900.00 Cr.
Lot Size: 23 Shares
Issue Price: ₹ 617 - 648 Per Equity Share
Listing At: NSE,BSE
Listing Date: Nov 09 2023

Promoters And Management:

i. Pradeep Ghisulal Rathod is the Chairman and Managing Director of the Company. He has passed the Higher Secondary Certificate Examination conducted by the Maharashtra State Board of Secondary and Higher Secondary Education, Pune. He has more than 40 years of experience in the business of manufacturing and trading in, inter alia, plastic articles, insulatedware articles and raw materials. He has been a Director of the Company since its incorporation. ii. Pankaj Ghisulal Rathod is the Joint Managing Director of the Company. He has passed the Senior Secondary Certificate Examination conducted by the Maharashtra State Board of Secondary and Higher Secondary Education, Pune. He has more than 34 years of experience in the business of manufacturing and trading in, inter alia, plastic articles and raw materials and insulatedware articles. He was instrumental in the launch of the writing instruments business and also has experience in marketing and product development of all consumer product categories. He has been a Director of our Company since its incorporation. iii. Gaurav Pradeep Rathod is the Joint Managing Director of the Company. He holds a master’s degree in business administration from the University of Strathclyde, Scotland and a bachelor’s degree in science (economicsfinance) from Bentley University, Massachusetts. He has more than 9 years of experience in the marketing of consumerware products and is instrumental in the launch of opalware range of products, and the growth of online and e-commerce sales of the Company. He has been a Director of the Company since its incorporation.

Financials of Cello World Limited IPO:

A. Balance Sheet
Particular (In Crore) Mar-21 Mar-22 Mar-23
Equity Share Capital 0.01 0.01 97.50
Reserves -107 88 239
Borrowings 322 452 326
Trade Payables 98 126 134
Other Liabilities 833 668 755
Total Liabilities 1,253 1,246 1,215
Net Block 238 239 254
Capital Work in Progress 4 12 21
Investments 45 35 51
Other Assets 39 53 87
Total NC Assets 326 339 412
Receivables 371 407 462
Inventory 307 377 430
Cash & Bank 32 55 50
Other Assets 110 157 182
Face value 5 5 5
B. Profit & Loss Statement
Particular (In Crore) Mar-21 Mar-22 Mar-23
Sales 1,049 1,359 1,797
Raw Material Cost 353 532 648
Purchases of Stock In Trade 156 200 311
Change in Inventory 13 -54 -63
Employee Cost 97 132 158
Other Expenses 154 215 323
Other Income 10 16 17
Depreciation 49 48 50
EBITDA 287 350 437
EBITDA Margin 27.34% 25.71% 24.34%
Interest 2 3 2
Profit before tax 236 299 385
Tax 70 80 100
Net profit 166 220 285
NPM (%) 15.62% 15.96% 15.72%
C. Cash Flow Statement
Particular (In Crore) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 284 344 443
Receivable -54 -42 -64
Inventory -13 -72 -53
Payable 32 36 9
Other WC Items 12 5 -7
Working Capital Changes -22 -73 -115
Direct Taxes -68 -84 -101
Net Cash Inflow from Operating Activity 194 187 227
Cash from Investing Activity
Fixed assets purchased -25 -49 -112
Fixed assets sold 1 1 11
Investments purchased -13 -1 1
Investment sold 62 67 58
Dividends received 1 1 1
Investment in subsidiaries 0 0 -331
Acquisition of companies 0 -187 -83
Other investing items -78 -94 -102
Net cash inflow from investing activities -53 -262 -557
Cash from Financing Activity
Proceeds from shares 0 0 475
Proceeds from borrowings 379 391 154
Repayment of borrowings -201 -266 -280
Intrest paid fin -2 -2 -0.5
Dividends paid -0.1 -6 -10
Other financing items -309 -24 -15
Net Cash Flow 8 20 -6

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Cello World Limited 1,797 285 13.43 48.2 648 13,753
Borosil Limited 1,011 90 7.85 59.7 385 4,398
Kokuyo Camlin Limited 775 24 2.44 40.4 141 1,394
La Opala RG Limited 452 123 11.08 35.5 421 4,677
Stove Kraft Limited 1,281 36 10.83 46.9 508 1,682
TTK Prestige Limited 2,777 253 18.34 50.0 800 11,087
Linc Limited 487 37 25.15 30.7 833 1,239
Hawkins Cookers Limited 1,006 95 179.24 40.5 7,080 3,745
* All the data is as per FY23.

Recommendation on Cello World Limited IPO:

Complete Analysis Here

Lead Manager of Cello World Limited IPO:

  1. ICICI Securities Limited
  2. IIFL Securities Ltd
  3. JM Financial Consultants Private Limited
  4. Kotak Mahindra Capital Company Limited
  5. Motilal Oswal Investments Advisors Private Limited

Registrar of Cello World Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Cello World Limited 597/2A, Somnath Road, Dabhel Nani Daman –396 210, Phone: +91 22 2685 1027 Email: grievance@celloworld.com Website: https://celloworld.com/

Discussion on Cello World Limited IPO:

1 Comment

Leave a Reply