Shares of Cello World surged nearly 7% to reach an all-time high of Rs 1,025 on July 4, following the company’s launch of a qualified institutional placement (QIP) aimed at raising Rs 730 crore.
As of 10:44 am, Cello World shares were trading at Rs 992.05 on the NSE, slightly off their peak reached earlier in the session. The news of the QIP also led to a significant increase in trading volumes, with 10 lakh shares changing hands, well above the one-month daily average of four lakh shares.
In the QIP, Cello World is offering equity shares at a floor price of Rs 896.09 per share, representing a nearly 12% discount from the previous closing price of Rs 901.05.
This fundraising initiative comes just eight months after Cello World’s Rs 1,900-crore initial public offering (IPO), during which the company’s promoters and investors conducted an offer for sale (OFS).
The funds raised through the QIP will be utilized for various purposes, including debt repayment, enhancing manufacturing facilities, funding growth initiatives, and meeting working capital requirements. Additionally, reducing the promoter stake to 75% is a key objective of the QIP, aimed at complying with SEBI’s minimum public shareholding norms within the stipulated timeframe.
Since its IPO in November last year, Cello World shares have consistently traded at a premium, reflecting investor confidence. The stock has appreciated by approximately 16% since its listing.
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