Cello lists at 28% premium

Cello World today made a very good debut – as against the IPO price of Rs.648 the stock got listed a Rs.831, a premium of over 28%. Because the market is now used to more than 50% listing, this is labelled as ‘decent’.

The IPO was subscribed 38.90 times on its final day, led by institutional investors (108.57 times), non-institutional investors (24.42 times), retail investors (3.06 times), and a portion reserved for employees (2.60 times).

In our IPO Analysis, we had concluded, “Company’s margin and expected growth are attractive, but it does not score well on corporate governance. Hence, one ‘may apply’ in the IPO, purely for trading purposes, and not for portfolio holding.”