Exploring today’s IPO lineup: Cello World on the main board, two from SME segment

The IPO market is currently experiencing a significant surge in activity, marked by a substantial increase in the number of companies opting to go public. Businesses from various sectors are choosing initial public offerings to raise capital, attracting significant attention from investors.

Indeed, today, three new IPOs are set to open for subscription on Dalal Street. These offerings collectively target raising Rs 1,900 crore on the main board, with Rs 65.27 crore of this amount coming from the SME segment. Let’s explore each one.

Main Board 

Cello World is a well-known Indian consumer goods company, primarily involved in three major product categories: writing instruments and stationery, moulded furniture, and consumer housewares, along with related items. With over six decades of experience in the consumer goods industry, the company possesses a profound understanding of consumer preferences and choices.

The company will not receive any proceeds from the offering since it is an offer for sale.

The IPO’s price band is set at Rs 617 to Rs 648 per share, and the offer will conclude on November 01, among the mainboard IPOs. It is scheduled to make its market debut on November 09. The company aims to raise Rs 1,900 crore through its maiden public issue, primarily through an offer for sale (OFS) of 2.93 crore equity shares by its promoters.

SME Segment 

Transteel is a furniture company that boasts a rich history of over two decades in catering to the corporate and B2B sectors. The company’s manufacturing facility is strategically located in Yeshwanthpur, Bangalore, Karnataka, with its inception dating back to 1995.

The company plans to use the net proceeds from the offering for these key purposes: investing in a modern flour mill in Patna, Bihar through their subsidiary, acquiring machinery for their Ranchi unit, covering working capital needs, repaying unsecured loans, and addressing general corporate expenses.

The IPO’s price band is set at Rs 67 to Rs 70 each, and the offer will close on November 01, among SME Segment IPO. It is scheduled to make its market debut on November 09. The company aims to raise Rs 49.98 crore through its maiden public issue, primarily through a fresh issuance of shares worth Rs 47.49 crore and an offer for sale (OFS) of 3.56 lakh equity shares by its promoters.

Vrundavan Plantation is engaged in the nursery business, with core operations centred around landscape development, horticulture, plantation, landscape maintenance, and irrigation projects. Incorporated in 1997, the company is dedicated to its mission.

The company’s primary objective is to safeguard, rejuvenate, and expand India’s forested areas in response to climate change. Additionally, they aspire to oversee the management of 10 million hectares of both forested and non-forested land, to enhance forest cover and improve the quality of existing forests. Their overarching mission is to contribute to greening not only India but also the global environment.

The company will use the net proceeds from the offering for repaying loans, meeting working capital needs, general corporate purposes, and covering public issue expenses.

The IPO’s price is set at Rs 108 per share, and the offer will close on November 01, within the SME Segment IPO. It is scheduled to make its market debut on November 09. The company aims to raise Rs 15.29 crore through its maiden public issue, primarily through a fresh issuance of shares worth Rs 15.29 crore.

Today’s Market Update: 

Today, the broader market commenced with a somewhat flat to positive trend. The Nifty began the day virtually unchanged at 19,053, a marginal 6-point increase from Friday’s closing level of 19,047. Currently, it is trading at 18,973, reflecting a 74-point decrease. In contrast, the BSE Sensex started the day at 63,885, marking a 103-point rise from Friday’s closing levels.

Looking at the advance-decline ratio of Nifty50 stocks, we observe that forty-one stocks are trading in the red, while the remaining nine stocks are in the green.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.