Cello World launches Rs 737 crore QIP

ET Intelligence Group: Daman-headquartered houseware and stationary maker Cello World has initiated a share sale to institutional investors through a qualified institutional placement (QIP) to raise Rs 737 crore ($88 million), as per a term sheet reviewed by ET.

The term sheet indicates an indicative issue price of Rs 852 per share and a floor price of Rs 896 per share. Cello World’s stock closed at Rs 961 on July 3, indicating that the QIP is being launched at an 11% discount to the last closing price.

The issuance of additional shares for the QIP would result in an equity dilution of 4.1% based on the pre-issue outstanding equity share capital. US broker Jefferies is serving as the banker to the deal.