Cellecor Gadgets, a company engaged in the procurement, branding, and distribution of various gadgets, successfully concluded its initial public offering (IPO) on September 20. The IPO, which opened for subscription on September 15, received a tremendous response from investors, with a subscription of 116.33 times the offered shares. The retail portion of the IPO was booked 124.08 times.
The IPO shares were listed on the NSE SME platform on September 28, and the stock price jumped 5 percent, reaching the upper price band of Rs 92. The company’s grey market premium (GMP) also stood at Rs 50, implying a listing price of Rs 142.
Cellecor Gadgets raised Rs 50.77 crore from the IPO, using the proceeds primarily for its working capital requirement of Rs 40 crore. The remainder will be allocated to general corporate purposes.
In terms of financial performance, the company reported a significant increase in net profit for the financial year that ended in March 2023. The net profit rose sharply from Rs 2.14 crore to Rs 7.97 crore during this period. Additionally, revenue from operations increased from Rs 121.3 crore to Rs 264.35 crore.
Following the IPO, the promoters’ shareholding in Cellecor Gadgets decreased from 69.95 percent to 51.54 percent, while public shareholding increased to 48.46 percent from 30.05 percent. The largest shareholder in the company is Tano Investment Opportunities Fund, which holds an 18.64 percent stake.
Narnolia Financial Services served as the book-running lead manager for the IPO, while Skyline Financial Services Private acted as the registrar. SS Corporate Securities and Kantilal Chhaganlal Securities were the market-makers.
Cellecor Gadgets operates with a network of over 1,200 service centers, more than 800 distributors, and its products are available in over 24,000 retail stores. The company offers a wide range of gadgets, including televisions, mobile phones, smart wearables, mobile accessories, smartwatches, and neckbands, all sold under its flagship brand, Cellecor.
Overall, the strong response to Cellecor Gadgets’ IPO reflects investors’ confidence in the company and its growth potential in the gadget market.
– IPO: Initial Public Offering is the process through which a private company offers its shares to the public for the first time.
– NSE SME: NSE Small and Medium Enterprises Exchange is a platform established by the National Stock Exchange of India for the listing and trading of securities issued by small and medium-sized enterprises.
– Grey Market Premium (GMP): Grey market refers to unofficial trading of shares or securities before they are officially listed on a stock exchange. GMP is the premium or difference between the unofficial trading price and the IPO price.
– Book-running Lead Manager: A book-running lead manager is responsible for managing the book-building process during an IPO, including the determination of the offering price and allocation of shares.
– Registrar: A registrar is a company or institution responsible for maintaining a register of shareholders for a publicly listed company.
– Market-Makers: Market-makers are individuals or institutions that provide liquidity to a market by buying and selling securities to ensure continuous trading. They play a crucial role in facilitating smooth trading and price discovery.
– Net Profit: Net profit is the amount remaining after deducting all expenses, including taxes and interest, from a company’s total revenue. It represents the company’s profitability.
– Revenue from operations: Revenue from operations is the income generated by a company’s core business activities, excluding any non-operating income or revenue. It reflects the company’s ability to generate revenue from its primary operations.
– Stake: Stake refers to the ownership interest or percentage that an individual or entity holds in a company.
Narnolia Financial Services
Skyline Financial Services Private