Shares of consumer ware firm Cello World made their stock exchange debut on Monday with a premium of around 28 per cent against its initial public offering (IPO) issue price.
The shares were listed at around Rs 831, over its issue price of Rs 648 on the Indian exchanges. At the time of filing the story, it fell marginally to trade at Rs 800.
Through an initial public offering (IPO), Cello World raised a total of Rs 1,900 crore via the offer-for-sale (OFS) route, with up to 2.93 crore shares sold by its promoters and other shareholders.
The company's shares were up for subscription between October 30 and November 1. The three-day IPO worth was subscribed about 40 times.
The quota for qualified institutional bidders was subscribed 122 times, while the portion set aside for non-institutional investors saw 25 times bidding. The allocation reserved for retail investors and employees was subscribed 3.2 times and 2.7 times, respectively, market data showed.
Established in 1962, the brand deals in drinkware, which includes an array of water bottles, flasks, tea sets, and coffee mugs, to dinnerware comprising opalware and stainless steel sets, among others.
"Despite the premium valuation, the IPO received a positive response from investors. This is likely due to the company's strong brand recognition, diversified product portfolio, and pan-India presence," said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.
"After such a strong listing, investors may book profit; however, those who have a long-term investment horizon can keep a stop loss at 750," Nyati noted.