Cellecor Gadgets IPO Opens On September 15, GMP Jumps 45% Ahead of Bidding

An emeging brand in consumer electronics, Cellecor Gadgets, has declared its initial public offering (IPO). The initial public offering (IPO) is slated to begin accepting bidding on Friday, September 15, 2023, and end on Wednesday, September 20, 2023. The fixed price range for Cellecor Gadgets IPO is between Rs. 87 and Rs. 92 per equity share.

A total of 55.18 lakh new equity shares, each having a face value of Rs. 10, are being offered as part of the initial public offering (IPO). Each lot in the IPO is priced at Rs 1,10,400 at the upper end of the price range, with a lot size of 1,200 equity shares. Retail investors may submit an application for one lot, while non-institutional investors may submit an application for at least two lots.

The proceeds from the IPO will be used for general company objectives, to fund the company's working capital needs, and to pay for issue-related expenses. SS Corporate Securities and Kantilal Chhaganlal Securities are the market makers for the offering, and 2.76 lakh equity shares have been set aside for market maker sections.

Cellecor Gadgets has allocated 50% of the IPO offer to qualified institutional bidders (QIBs), while 15% of equity shares are set aside for non-institutional investors and the final 35% of the offering will be available to retail investors.

Mr. Ravi Aggarwal, Founder of Cellecor Gadgets, expressed his enthusiasm for the IPO, stating, "Cellecor Gadgets has embarked on an incredible journey, and this IPO marks a significant milestone in our growth story. 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." Mr. Ravi Agarwal, the promoter of Cellecor Gadgets, has more than ten years of expertise in the telecom industry.

With more than 1,200 service centres and more than 800 distributors, Cellecor Gadgets has a huge network. More than 24,000 retail locations throughout India supply the company's products, which are accessible to over 100 million individuals both offline and online. Cellecor Gadgets recorded a net profit of Rs 7.97 crore with revenue of Rs 264.37 crore for the fiscal year that ended on March 31, 2023. The firm made a net profit of Rs 2.14 crore in the previous fiscal year, which ended in March 2022 and had revenue of Rs 121.29 crore.

With over 24,000 retail locations offering its offerings, Cellecor Gadgets has effectively built a huge distribution network and particularly targets Tier 3 and Tier 4 towns. The company's strong rural presence has been demonstrated by the fact that a significant Rs 256 crore of its FY23 sales of Rs 264 crore came from offline rural channels. Cellecor Gadgets is set up for additional e-commerce growth with a growing online presence on websites like Amazon and Flipkart. Mobile phones account for 47% of the company's revenue, followed by accessories (23% of revenue) and hearables/wearables.

Market observers believe that the latest GMP for Cellecor Gadgets SME IPO is Rs 42 as of September 11th, 2023, at 11:30 AM. Taking into account the upper price band of Rs 92.00, the estimated listing price for Cellecor Gadgets SME IPO is Rs 134 (cap price + today's GMP). It is therefore predicted that Cellecor Gadget will be listed on the NSE SME platform on September 28, 2023, at a premium of 45.65% based on the grey market.