Leading household consumer products company, Cello World, has initiated preliminary steps to float an initial public offer (IPO) via which the firm plans to raise between Rs 2,000 crore and Rs 2,500 crore, multiple industry sources with knowledge of the matter told Moneycontrol.
The Mumbai-based firm which competes with the likes of Milton, La Opala and Borosil, is backed by ICICI Venture, the alternative investment arm of ICICI Bank.
"The IPO process got kicked off earlier this week and the deal is likely to be a combination of primary and secondary issue of shares. As of now, the firm plans to raise between Rs 2,000 crore and Rs 2,500 crore depending on valuations. Kotak Mahindra Capital, ICICI Securities, JM Financial, IIFL Capital and Motilal Oswal Investment Advisors Ltd are the investment banks that have been engaged as advisors for the deal," said one of the persons cited above.
A second person confirmed the deal kickoff and the syndicate of i-bankers and said that Cello World was looking to raise around Rs 2,000 crore through the proposed listing, though a final call on the quantum would be taken at a later stage.
"The IPO will facilitate a partial exit for ICICI Venture and help to mop up growth capital. The promoter group may also look at unlocking value and diluting part stake," this person added.
All the three persons cited above spoke to Moneycontrol on condition of anonymity.
Moneycontrol has sent a query along with a reminder to Cello World and is awaiting an email response. Kotak Mahindra Capital, ICICI Securities, JM Financial, IIFL Capital, Motilal Oswal Investment Advisors Ltd and ICICI Venture could not be immediately contacted for a response. This article will be updated as soon as we hear from the parties.
In November 2022, ICICI Venture announced that it had invested Rs 360 crore in Cello World.
“Cello World has demonstrated industry-leading growth and profitability characteristics. The organised section of the industry will see further acceleration in the coming years with branding and premiumisation gaining ground," Gagandeep Singh, senior director, Private Equity, ICICI Venture had said at the time of fund infusion.
The Rathod family-promoted Cello Group had a humble beginning in Mumbai back in 1967, when it set up a tiny factory for making plastic PVC footwear and bangles. Today, it is one of the most diversified houseware brands in the country with more than 10,000 products spread across 14 categories, according to the company website. It has a presence in categories like drinkware, opalware and kitchen appliances to cleaning aids, bathroom accessories and sanitisers and its products cater to hotels, restaurants and catering also.
Source: Money Control