Cello World shares rally over 6% to hit 52-week high on ₹730 cr QIP launch

Cello World shares opened higher and rallied further up to 6.75% to hit a 52-week high of ₹1,025 per share on the NSE. More than 9.66 lakh shares of the company changed hands on the bourse.

The company's shares have been on a winning run since June 28, when they rallied more than 13%.

According to reports, Cello World plans to sell more than 86 lakh equity shares at a price of ₹852 apiece to qualified institutional players to raise funds of up to ₹730 crore. The QIP offer price is around an 11% discount to Wednesday's closing price and nearly 5% lower than the floor price.

The company informed stock exchanges on July 3 that its board approved the opening of the QIP issue. The board approved the floor price for the issue at ₹896.09 per equity share.

The Board, on May 29, approved a proposal to raise funds through a QIP issue of up to 86.5 lakh shares of ₹5 each.

The Cello World management in May told analysts that the company had planned to raise funds through a QIP issue to fund its capex plans and settle a director’s loan.

The company told analysts it sees a business opportunity in the glass segment and wants to be ready for any opportunity in that segment. The management said the company has an opportunity to buy one of the consumer companies, which is very good in our segment itself.

Cello World reported an 11% rise in revenue to ₹2,000 crore in 2023-24, led by growth in consumer ware, writing instruments and moulded furniture. The company has projected a 15-17% revenue growth for the current fiscal.

Cello World shares are trading 4.83% higher at ₹1,006 apiece on the NSE at 11:30 am.