Cello World Limited

About Cello World Limited  Incorporated in 2018, Cello World Limited is a prominent player in the consumerware market in India. It offers its products across three categories, i.e., consumer houseware, writing instruments and stationery, and moulded furniture and allied products.  The company sells products such as houseware, insulatedware, electronic appliances and cookware, cleaning aids, opalware, and glassware under the consumer houseware category. Similarly, writing instruments and stationery products are marketed under the brand name of Unomax. Meanwhile, moulded furniture and allied products are manufactured under Wim Plast Limited.  As of 30 June 2023, these products are manufactured in 13 manufacturing facilities across five locations in India. The revenue generated by products from the company’s in-house manufacturing accounted for 79% of its total income from operations in FY23. The remaining products, mainly steel and glassware, are manufactured by third-party contract manufacturers. However, a glassware manufacturing facility is being established in Rajasthan.  Large scale manufacturing and supply chain management, helps the company benefit from economies of scale. Further, through technology use, the company is able to maintain optimal inventory levels across its manufacturing facilities.  The company operates a strong pan-India distribution network. As of 30 June 2023, the company's consumer houseware as well as writing instruments and stationery products are available in more than 50,000 retail shops across India.  Between FY21 and FY23, the company has seen a CAGR rise of over 19% in both its revenue from operations and net profit. During the same period, its EBITDA margin was in the range of 24% to 27%. In FY23, the consumer houseware category contributed over 64% to overall revenue, while moulded furniture business made up 23.4% of total revenue.  Additionally, the Indian consumerware market is expected to grow at a CAGR of 10% between FY22 and FY27 owing to factors such as increasing disposable income, the nuclearization of families, and growing demand for organised and functional kitchen spaces. All of this could be beneficial for the company.  And now, Cello World Limited is coming out with its initial public offer (IPO). The entire IPO will be an offer for sale and the respective selling shareholders will receive all the offer proceeds. Its shares will be listed on the NSE and the BSE.  Here are key details about the Cello World Limited IPO:     Company Name  Cello World Limited   Company Type  Private    Company Established On  2018   Cello World Limited IPO Opening Date  30th October 2023    Cello World Limited IPO Closing Date  1st November 2023   Cello World Limited IPO Allotment Status  6th November 2023    Credit of Shares to the Demat Account  8th November 2023   Cello World Limited IPO Listing Date  6th November 2023    Blue Jet Healthcare Limited IPO Face Value  ₹5   Cello World Limited IPO Lot Size  23 Shares    Cello World Limited IPO Issue Size  ₹1,900 Cr   Cello World Limited IPO to be Listed on  BSE, NSE    Cello World Limited IPO Price band  ₹617 – ₹648 per share       Financial snapshot     Particulars  FY21  FY22  FY23    Revenue  1,049 crore  1,359 crore  1,796 crore    Net Profit  165 crore  219 crore  285 crore               Here’s a quick look at Cello World Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Well-established brand name and strong market positions as the brand ‘Cello’ was awarded as one of India’s most trusted brands in 2021 by Commerzify.  Ability to manufacture a diverse range of products with an installed annual capacity of 57 million units of consumer houseware products, 705 million units of writing instruments and stationery products, and 12 million units of moulded furniture and allied products, as of 30 June 2023.  Long-term association with the brand. While the company was incorporated in 2018, its promoters are associated with Cello Plastic Industrial Works and the “Cello” brand since 1962.  Diversified product portfolio with an offering of 15,891 SKUs (stock-keeping units) across different product categories.  Resilient business model allowed it to progress despite the effect of the COVID-19 pandemic, as its revenue from operations grew from ₹1,049 crore in FY21 to ₹1,796 crore in FY23.  Presence across multiple channels as general trade accounted for 80.58% of its total revenue from operations, export accounted for 7.80%, online sales accounted for 7.91% and modern trade accounted for 3.71% in FY23.   Risks and threats   Company depends entirely on third-party suppliers for the supply of raw materials, accounting for 45% of its total expenses in FY23.  May be affected by raw material prices, especially plastic granules and plastic polymer prices.  The sale of steel and glassware products accounts for 20% of the total sales which are supplied by third-party contract manufacturers primarily located in China.  Faces significant competition from large competitors with greater resources to spend on advertising, marketing, and to offer discounts.  Business is subject to seasonality as well as subjected to the risk of various unfair trade practices, such as selling counterfeit, cloned, lookalike and pass-off products.  Does not own the trademark and logos of its key brands including Cello, Unomax, Kleeno, and Puro.            Cello World Limited IPO details  |Cello World IPO opening date  According to the offer document filed by the company with the SEBI, the Cello World IPO’s opening date – in other words, the Cello World IPO launch date – will be 30th October 2023. The Cello World IPO closing date is 1st November 2023. After this, investors will be updated about the allotment status on 6th November 2023.Investors, who have been allotted shares, can expect them to be credited to their demat account on 8th November 2023. The Cello World IPO listing date is 9th November 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |Cello World Limited IPO Price Band  The entire IPO is an offer for sale. The Cello World IPO price band has been set between ₹617 and ₹648 per share. Interested investors can choose a price within this band to apply for the IPO.The Cello World IPO listing price will be determined on 9th November 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.  |Cello World Limited IPO Lot size  The Cello World Limited IPO details haven’t been declared. Hence, the Cello World Limited IPO lot size also hasn’t been announced yet. It’s important to note that an investor can apply for a minimum of 1 lot. Meanwhile, according to the news reports, the Cello World Limited IPO issue size could be around ₹550 crore.           How to pre-apply for the Cello World Limited IPO?  You can pre-apply for the Cello World Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Cello World Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Cello World Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Cello World Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Cello World Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Cello World Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Cello World LimitedIPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Cello World Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Cello World Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Cello World Limited IPO  To apply for the Cello World Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Cello World Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Cello World Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.