Cellecor Gadgets IPO booked 16.9 times on day 2; grey market premium rises

The initial public offering (IPO) of Cellecor Gadgets will conclude for bidding on Wednesday, September 20, 2023. The SME issue has attracted a host of bidders during the initial two-days of the bidding process across all segments, which has resulted in strong subscription so far. The company has fixed its price band at Rs 87-92.

The Rs 50.77 crore issue, which is entirely a fresh share sale, was booked 16.87 times at the end of Day 2, according to the data from NSE. Investors made bids for 6,65,86,800 equity shares, compared to 39,46,800 equity shares offered for bidding. The strong bidding has pushed its premium in the grey markets.

Shares of Cellecor Gadgets are commanding a premium of Rs 60 apiece in the grey markets, suggesting a listing pop of about 60 per cent over the upper range of the price band. The premium in the unofficial market was around Rs 45 per share on Friday, September 15, when the issue opened for bidding.

Ahead of its IPO, Cellecor Gadget had raised Rs 14.46 crore from four anchor investors by allocating them 15.72 lakh equity shares at an issue price of Rs 92 per share. The anchor books included India Ahead Venture Trust, Founders Collective Fund, Meru Investment Fund PCC-CELL 1 and AG Dynamics.

Investors can make bids in the lot size of 1,200 equity shares. Retail investors can apply for a single lot of 1,200 shares, amounting to Rs 1,10,400 at the upper end of price band. However, non-institutional investors can apply for a minimum of two lots, or 2,400 equity shares.

"We are committed to providing innovative and affordable electronic products to consumers across India. The funds raised through this IPO will enable us to further expand our presence and enhance our offerings in the market," said Ravi Aggarwal, Founder of Cellecor Gadgets.

The net proceeds from the issue shall be utilized towards issue expenses, working capital requirement, and general corporate purposes. Its products are also present at more than 24,000 retail stores with more than 300 range of products pan India through offline and online channels. Cellecor Gadgets has more than 1200 service centers, and over 800 distributors.

The company has reserved 2.76 lakh equity shares as market maker portions - SS Corporate Securities and Kantilal Chhaganlal Securities. Narnolia Financial Services is the sole manager to the issue, while Skyline Financial Services has been appointed as the registrar. Being an SME issue, the company will be listed on emerge platform of the National Stock Exchange (NSE).

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