Indian conglomerate, Cello World, known for its wide array of products including pens, stationery, furniture, and glassware, has announced that its initial public offering (IPO) is set to debut on October 30. The company aims to raise Rs 1,750 crore through the IPO, marking a significant step in its growth strategy.
The IPO is structured as a combination of a fresh issue and an offer for sale (OFS). The fresh issue will raise Rs 1,000 crore, while the OFS will be to the tune of Rs 750 crore. The proceeds of the fresh issue will be used for the expansion of existing manufacturing facilities, debt repayment, and general corporate purposes.
"The decision to go public is a historic moment for us. It reflects the strength of our brand and our optimism about the future growth of the Indian consumer goods market," said Pradeep Ratilal Patel, Chairman and Managing Director of Cello World.
Founded in 1982, Cello World has emerged as a market leader in the consumer goods industry, with a vast portfolio of products catering to a diverse range of consumer needs. The company's products are ubiquitous in Indian households, underlining the brand's popularity and penetration in the market.
According to an IMARC Group report, the Indian consumer goods market is projected to reach a value of US$ 262.7 Billion by 2023, exhibiting a CAGR of 10% during 2018-2023. The upcoming IPO of Cello World aligns with the positive growth trajectory of the market.
| Issue Open Date | October 30 |
|---|---|
| Issue Type | Fresh Issue and OFS |
| Funds to be raised | Rs 1,750 crore |
| Use of Proceeds | Expansion, Debt Repayment, General Corporate Purposes |
Experts suggest that the IPO could be a game-changer for Cello World, enabling the company to tap into the capital market, accelerate its growth, and further consolidate its position in the consumer goods industry.
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