Cello World shares jump 4% to new high on QIP launch
Cello World's shares surged 4% to a new high of Rs 1,024 on BSE following the launch of a qualified institutional placement to raise funds. The company plans to utilize the funds for debt repayment and potential expansion in the glassware segment or acquisitions.
Shares of household products manufacturer on Thursday rallied over 4% to a fresh record high of Rs 1,024 on BSE after the company launched a qualified institutional placement (QIP) to raise funds."The QIP Committee has fixed the ‘relevant date’ for the purpose of the Issue, in terms of Regulation 171 of the SEBI ICDR Regulations, as July 3, 2024, and accordingly the floor price in respect of the Issue has been determined, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations, as ₹ 896.09 per Equity Share," Cello said in a regulatory filing.
The company said it may at its discretion offer a discount of not more than 5% on the floor price for the issue. "The issue price will be determined by the Company in consultation with the book-running lead managers appointed for the issue," it said.
Earlier in May, the Cello World board had approved the raising of funds for 86,54,000 shares for repayment of promoter debt in full amounting to Rs 3.3 billion, and possible future capital expansion for the glassware segment and/or acquisition of a small consumer company within the industry.
The company was listed last year in November on stock exchanges at Rs 831, a premium of over 28% against the IPO price of Rs 648.
Cello World's business is broadly divided into two categories, consumer houseware and consumer glassware. It is a prominent player in the consumer ware market in India with a presence in consumer houseware, writing instruments and stationery, molded furniture and allied products, and consumer glassware categories.
Source: Stocks-Markets-Economic Times
