Electronics market player Cellecor Gadgets has secured Rs 14.46 crore ($1.94 million) from four anchor investors as its initial public offering (IPO) is set to conclude for bidding on Wednesday, September 20, 2023. The investors include India Ahead Venture Trust, Founders Collective Fund, Meru Investment Fund PCC-CELL 1, and AG Dynamics.
The IPO, a fresh share sale worth Rs 50.77 crore ($6.8 million), attracted substantial interest across various market segments. By Tuesday, the second day of bidding, the issue was oversubscribed by approximately 16.87 times according to data from the National Stock Exchange (NSE). Investors bid for 6,65,86,800 equity shares compared to the 39,46,800 equity shares offered.
Amidst the strong response to the IPO, shares of Cellecor Gadgets are commanding a premium in the unofficial grey markets. The premium per share stands at Rs 60 over the upper range of the price band of Rs 87-92, indicating a potential listing pop of around 60%. This represents a significant increase from the Rs 45 per share premium recorded on Thursday when bidding first opened.
As part of the IPO process, Cellecor Gadgets allocated 15.72 lakh equity shares at an issue price of Rs 92 per share to its four anchor investors. The bidding is open with a lot size of 1,200 equity shares for retail investors and a minimum of two lots for non-institutional investors.
The company plans to use the funds raised through this IPO to cover issue expenses and meet working capital requirements among other corporate purposes. Cellecor Gadgets operates in more than 24,000 retail stores across India with over 300 product offerings available through both offline and online channels. It also runs more than 1200 service centers and has over 800 distributors nationwide.
As part of the market maker portions, the company has set aside 2.76 lakh equity shares with SS Corporate Securities and Kantilal Chhaganlal Securities. Narnolia Financial Services will act as the sole manager of the issue, while Skyline Financial Services will serve as the registrar. Upon completion of the IPO, Cellecor Gadgets will be listed on the National Stock Exchange's Emerge platform, an exclusive platform for SMEs.
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