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What Should Investors Do Now That Cello World Shares Are Listing On The BSE At A 28% Premium At Rs 831?

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<p>Cello World Ltd.’s shares debuted well on Dalal Street on Monday after the consumer goods company was listed for Rs. 831, which is 28% more than its issue price of Rs. 648 on the BSE. Cello World’s shares began trading on the NSE for Rs 829, a 27.9% increase above the issue price.<img decoding=”async” class=”alignnone wp-image-270705″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/11/theindiaprint.com-on-november-9-lotus-is-scheduled-to-launch-into-the-indian-market-download-2023-11.jpg” alt=”theindiaprint.com on november 9 lotus is scheduled to launch into the indian market download 2023 11″ width=”1127″ height=”844″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/11/theindiaprint.com-on-november-9-lotus-is-scheduled-to-launch-into-the-indian-market-download-2023-11.jpg 259w, https://www.theindiaprint.com/wp-content/uploads/2023/11/theindiaprint.com-on-november-9-lotus-is-scheduled-to-launch-into-the-indian-market-download-2023-11-150×112.jpg 150w” sizes=”(max-width: 1127px) 100vw, 1127px” title=”What Should Investors Do Now That Cello World Shares Are Listing On The BSE At A 28% Premium At Rs 831? 6″></p>
<p>Through its first equity sale, which was fully an offer-for-sale (OFS) up to 2.93 crore by its founders and other selling shareholders, Cello World was able to raise a total of 1,900 crore. Between October 30 and November 1, the business sold shares at a price between Rs 617 and Rs 648 per share, with a lot size of 23 equity shares.</p>
<p>Over the course of the three-day bidding period, the issue had a strong total subscription rate of 38.9. Notably, non-institutional investors also showed great interest with a subscription rate of 24.42 times, while qualified institutional bids (QIBs) exceeded their allocated quota by an astounding 108.57 times.</p>
<p>The subscription rates for the allocations made by workers and retail investors were 2.60 times and 3.06 times, respectively.</p>
<p>One of the most well-known consumer goods companies in India is Cello World. It primarily trades in three categories: consumer goods, molded furniture, and writing tools and stationery. With over 60 years of expertise, Cello World is well-versed in the consumer goods sector. Its 13 production facilities are spread across 5 distinct Indian locales.</p>
<p>The book running lead managers were Kotak Mahindra Capital Company, ICICI Securities, IIFL Securities, JM Financial, and Motilal Oswal Investment Advisors. Link Intime India served as the issue registrar.</p>
<p>The gray market premium indicates that the listing on Cello Price has been either on par with or better than predicted. Prior to going public, Cello World was trading at an unofficial premium of Rs 160 per share, indicating a 25% increase in listing price above the declared issue price. Ever since the matter was closed, the premium on the gray market has not changed.</p>
<p>Now, what ought investors to do?</p>
<p>“The IPO received a positive response from investors despite the premium valuation,” said Shivani Nyati, Head of Wealth at Swastika Investmart Ltd. This is probably because of the company’s well-known brand, wide range of products, and nationwide presence in India.</p>
<p>Investors may book a profit with such a strong listing, but long-term investors may maintain a stop loss around 750, according to Nyati.</p>
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