Cellecor Gadgets IPO (NSE SME) Overview

Cellecor Gadgets IPO entails to raise to T₹50.77 crore. The issue comprises 55,18,800 shares entirely as fresh issue of shares. It is and is priced at ₹87 to ₹92 per share. Cellecor Gadgets is a Delhi-based electronic gadgets maker engaged in the procurement, branding, and distribution of televisions, mobile phones, smart wearables, mobile accessories, smart watches, and neckbands.

IPO opensSep 15, 2023
IPO ClosesSep 20, 2023
IPO Size (Rs.)  ₹50.77 Cr
IPO Size (shares)5,518,800 shares
Breakuponly Fresh issue
Face Value:₹ 10
IPO Price in Rs :₹87 to ₹92 per share
Minimum Lot1200 Shares
Listing AtNSE SME
Market Maker Quota5.00%
Anchor Quota28.48%
QIB Quota19.00%
NII Quota14.26%
Retail Quota33.25%
 Lead ManagerNarnolia Financial Services Ltd
RegistrarSkyline Financial Services
Market makerSs Corporate Securities, Kantilal Chhaganlal Securities

About Cellecor Gadgets Limited:

  • Incorporated in December 2020, Cellecor Gadgets Limited is involved in the procurement, branding, and distribution of smartwatches, mobile phones, televisions, smart wearables, neckbands and mobile accessories.
  • They sell their products under the flagship brand, Cellecor. The company’s business segments are categorised as – Entertainment and Communication, Peripherals and Modern Accessories. 
  • In India, Cellecor Gadgets has over 1,200 service centres and more than 800 distributors,.
  • Its products are available at over 24,000 retail stores.
  • The company claims to have a 100 million user base in the country. 
  • The company has three business verticals:
  • Entertainment and Communication: smart and conventional televisions, sound systems & sound bars. The category has 35 SKUs of televisions, 15 SKUs of sound systems and sound bars, and 70 SKUs of mobile phones.
  • Peripherals: True Wireless Earbuds, Neckbands, and Smart Watches. This has more than 145 SKUs.
  • Modern Accessories: power banks, data cables, USB chargers, quick chargers etc.

Financials:

Particulars / Rs LacsFYE23FYE22FYE21
Revenue from operation26,435.2012,128.990
Profit Before Tax1,061.40298.74-2.42
Profit after Tax797.07213.56-2.42
Share Capital11.321010
Net Worth1,381.26221.147.58
EPS 6.841.92-0.09
NAV 11.861.990.27
Total borrowings   
– Long Term563.1986.75
– Short Term1,521.1935
Post issue Share Capital2,097
FV10.0
IPO price92.0
EPS Fy233.8
PE Fy2324.2
Market cap in Lacs19,292.4
Market Cap/sales0.7

Anchor

Cellecor Gadgets IPO: Salient Points

  • Presently, Cellecor Gadgets sell various products including mobile phones, data cables, smart watches which are manufactured by manufacturing partners.
  • It plans foray into large electrical goods and selling “white goods” for which it is contemplating its own manufacturing facility.
  • Cellecor Gadgets R&D team has more than 50 engineers including specialists in hardware design and development, firmware design and development, software design and development, and mobile application development.
  • Cellecor Gadgets have established PAN India presence since last 12+ Years and built extensive distribution network with a wide geographical reach in India.
  • Its top 3 revenue generating states i.e., Uttar Pradesh, Delhi & Haryana contributed 6,160.06 lakhs, 5,980.96 lakhs and 3,378.70 lakhs respectively in Fiscals 2023, which accounted for 23.33%, 22.63 % and 12.78%, respectively of the revenue from operations for respective fiscal years.
  • Distributor network is present in following states:

  • In addition to physical locations, it has also invested in a digital presence to complement the on-ground sales network. This is through online platforms, including e-commerce websites and social media channels,
ParticularsTotal sales% of total salesOff-lineOnline
Mobile Phones82,78,90,08568.26%82,54,56,72024,33,365
Smart Hearables & Wearables15,77,92,27813.01%15,67,21,71510,70,563
Accessories22,72,16,25618.73%22,62,68,0539,48,203
Grand Total1,21,28,98,619100%1,20,84,46,48844,52,131
  • Cellecor Gadgets has collaborated with several major players like Cashkaro and Bajaj FinServ.
  • Cellecor Gadgets IPO is coming at a PE ratio of 24-25x(fy23 earnings).
  • Company has posted good growth in its top line and bottom line.
  • I intend to apply in Cellecor Gadgets IPO subject to availability of funds even as the issue is not cheap. The key risk remains from any overall significant market meltdown.
  • This is a reasonably sized SME issue.
  • GMP as reported on social media has been around Rs. 50 and has slowly moved upwards.
  • Narnolia Financial Services Ltd is the Lead Manager and has a reasonable but limited record. Past issues handled by them include Yudiz Solutions Limited. Drone Destination.
  • SME IPO are quite illiquid and volatile and exit options sometimes is delayed.

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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