New Delhi, Oct 27 (PTI) Household products and stationery manufacturer Cello World Ltd on Friday said it has collected Rs 567 crore from anchor investors, days before its initial public offering (IPO).

The company has decided to allocate a total of 86.5 lakh equity shares to 39 funds at Rs 648 apiece, which is also the upper end of the price band, according to a circular uploaded on BSE's website.

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Morgan Stanley Asia (Singapore) Pte Ltd, BNP Paribas Arbitrage, CLSA Global Markets Pte Ltd, Reliance General Insurance Company, Bajaj Allianz General Insurance Company, ICICI Prudential Mutual Fund (MF), Edelweiss MF, Tata MF and HDFC MF are among the anchor investors.

The issue is a complete offer for sale (OFS) of Rs 1,900 crore by promoters and other selling shareholders with no fresh issue of equity share component.

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The offer includes a reservation of shares worth up to Rs 10 crore for subscription by eligible employees.

The company raised the size of its IPO size to Rs 1,900 crore from Rs 1,750 planned earlier.

The maiden public issue, with a price band of Rs 617 to Rs 648 per share, will open for public subscription on October 30 and conclude on November 1.

The OFS comprises the sale of equity shares by Pankaj Ghisulal Rathod, Gaurav Pradeep Rathod, Pradeep Ghisulal Rathod, Sangeeta Pradeep Rathod, Babita Pankaj Rathod and Ruchi Gaurav Rathod.

The Mumbai-based Cello World has a product portfolio across three key categories -- consumer houseware, writing instruments and stationery, and moulded furniture and related products.

In 2017, it ventured into the glassware and opal ware business under the 'Cello' brand.

The company has 13 manufacturing facilities in five different locations -- Daman, Haridwar (Uttarakhand); Baddi (Himachal Pradesh); Chennai (Tamil Nadu) and Kolkata (West Bengal) as of March 31, 2023. It is also in the process of setting up a glassware manufacturing facility in Rajasthan.

Besides, its net profit rose 30 per cent to Rs 285 crore in FY23 from Rs 219.52 crore in the preceding fiscal.

Kotak Mahindra Capital Company Ltd, ICICI Securities Ltd, IIFL Securities Ltd, JM Financial Ltd and Motilal Oswal Investment Advisors Ltd are book-running lead managers. The shares are proposed to be listed on BSE and NSE.

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