The initial public offering (IPO) of Cell Point (India) will kick off for subscription on Thursday, June 16, as the company looks to raise Rs 50.34 crore via its primary stake sale. The company is offering its shares at Rs fixed price of Rs 100 apiece. The issue closes for subscription on Tuesday, June 20.
The IPO entirely consists of issuance of 50.34 lakh fresh equity shares with a lot size of 1,200 equity shares. Retail investors can place their bid for a single lot only, costing Rs 1,20,000. On the other hand, non-institutional investors need to bid for a minimum of two lots, or 2,400 equity shares, costing Rs 2,40,000.
The company has reserved 2,52,000 equity shares as the market maker portion and NNM Securities is the market maker for the issue. 47.82 lakh equity shares of half of the net issue is reserved for retail investors, while the remaining half has been allocated to non-institutional investors.
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Incorporated in 2001, Cell Point (India) is engaged in multi-brand retail selling of smartphones, tablets, mobile accessories, and mobile-related products and allied accessories from manufacturers like Apple, Samsung, Oppo, Realme, Nokia, Vivo, Xiaomi, Redmi, and Oneplus.
The company is also engaged in multi-brand retail selling of consumer durable electronics goods like smart TVs of various brands including Xiaomi, Realme, and One Plus. The company has over 75 stores across the state of Andhra Pradesh. Out of the 75 stores, 2 stores are owned properties and 73 stores are on leased properties.
The net proceeds from the issue will be utilised towards the repayment of certain borrowings, repair and renovate existing retail outlets, setting up new stores, meeting working capital requirements, and general corporate purposes.
Ahead of the IPO, the company is commanding a premium of Rs 10-15 in the grey market, suggesting a mild listing pop for the company. SEBI-registered market analyst Nikhil Bhatt from Investment Point has suggested ‘subscribing’ to the issue on a medium to long-term basis.
First Overseas Capital is the sole book-running manager to the issue, while Bigshare Services has been appointed as the registrar. The company will be listed on the emerging platform (SME Platform) of the National Stock Exchange (NSE) on June 25.
