Cello World files IPO papers with SEBI to raise Rs. 1,750 crores
Cello World Ltd is a famous leading Indian consumer goods company. They focus on hydration (steel and plastic bottles), thermoware, and glassware/opalware categories. The family-owned business has a presence across 30,000 retail outlets through more than 300 distributors.
Cello World has filed a draft red herring prospectus (DRHP) with SEBI to raise Rs. 1,750 crores via an initial public offering (IPO). The IPO will be an offer for sale with no equity issued during the offering.
Cello World: Promoters
The Company’s Promoters plan to offer shares worth up to Rs. 1,350 crores in the IPO:
| Pankaj Ghisulal Rathod | 670 crores |
| Gaurav Pradeep Rathod | 380 crores |
| Pradeep Ghisulal Rathod | 300 crores |
| Sangeeta Pradeep Rathod | 200 crores |
| Babita Pankaj Rathod | 100 crores |
| Ruchi Gaurav Rathod | 100 crores |
Cello World: Shareholders of the company
| Name of Shareholder | No. of shares | % of holding |
| Pankaj Ghisulal Rathod | 3,200 | 32% |
| Gaurav Pradeep Rathod | 2,800 | 28% |
| Pradeep Ghisulal Rathod | 1,600 | 16% |
| Babita Pankaj Rathod | 1,200 | 12% |
| Sangeeta Pradeep Rathod | 800 | 8% |
| Ruchi Gaurav Rathod | 400 | 4% |
| Total | 10,000 | 100% |
(As on 31 March 2022)
Cello World: Lead Managers
- Kotak Mahindra Capital
- ICICI Securities
- JM Financials
- Motilal Oswal Securities
- IIFL Securities
Cello World: Competitors
- Milton
- La Opala
- Borosil
Cello World is backed by ICICI Venture, the alternative investment arm of ICICI Bank. In November 2022, ICICI Venture Funds Management announced that it had invested 360 crores in Cello World.
Cello World: Financial Performance
Revenue from operations/ sales has increased 20% YoY, showcasing strong growth in the sale of products.
| March 31, 2021 | March 31, 2022 | YoY % change | |
| Operating Revenue | Rs. 523.32 crores | Rs. 630.17 crores | 20.42% |
Net Profit has declined by nearly 30%. This can be attributed to the 27% increase in expenditure.
| March 31, 2021 | March 31, 2022 | YoY % change | |
| Net Profit | Rs. 56.36 crores | Rs. 39.51 crores | -29.90% |
Expenses have increased for the company by 27% YoY. This is majorly due to purchases and other direct expenses, changes in inventory of finished goods as well as selling and distributive costs.
| March 31, 2021 | March 31, 2022 | YoY % change | |
| Total Expenses | Rs. 454.73 crores | Rs. 577.56 crores | 27.01% |
The earning per equity share of Cello World declined from 0.56 on March 31 2021 to 0.40 as on March 31, 2022.
Reserves and Surpluses of the company have increased from Rs. 93.76 crores in FY2021 to Rs. 133.28 crores in FY2022, although trade payables have seen an increase too from Rs. 34.60 crores in FY2021 to Rs. 121.40 crores in FY2022. Trade payables were mainly other than micro small and medium enterprises.
This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.