Cello World Limited has reported the utilization status of its Rs. 737.32 crore Qualified Institutional Placement (QIP) proceeds through a monitoring agency report prepared by CARE Ratings Limited for the quarter ended December 31, 2025. The consumer durables company, operating in the houseware segment, conducted its QIP issue from July 03-05, 2024.

QIP Proceeds Utilization Overview

The monitoring report reveals that out of the total QIP proceeds of Rs. 737.32 crore, the company has utilized Rs. 694.96 crore across seven defined objects, leaving Rs. 42.36 crore unutilized as of December 31, 2025. During the quarter ended December 31, 2025, the company utilized Rs. 19.15 crore specifically towards Object 1 - investment in subsidiary Cello Consumerware Private Limited.

Object-wise Deployment Status

The QIP proceeds were allocated across seven specific objects, with varying degrees of completion. Five objects have been fully completed, while one remains partially implemented due to timeline extensions.

Timeline Extension for Manufacturing Facility

The primary area of concern highlighted in the report relates to Object 1 - investment in subsidiary Cello Consumerware Private Limited for setting up a new manufacturing facility for stainless steel bottles, plastic insulatedware, and household articles. The original completion timeline of March 31, 2025, has been extended to March 2026 through a board resolution passed on May 23, 2025.

The company has invested Rs. 62.89 crore in this object through unsecured loans to its subsidiary, with Rs. 19.15 crore utilized during the quarter ended December 31, 2025. The monitoring agency noted that some transactions involved purchase orders pertaining to previous quarters, and funds were routed through the subsidiary's current account, resulting in comingling with other transactions.

Deployment of Unutilized Funds

The unutilized proceeds of Rs. 42.36 crore have been temporarily invested in money market instruments as permitted under the placement document. The funds are primarily deployed in Tata Liquid Fund - Direct Plan - Growth, with a market value of Rs. 51.29 crore as of December 31, 2025, including accumulated earnings of Rs. 4.16 crore that have been reinvested.

Regulatory Compliance and Monitoring

CARE Ratings Limited, serving as the monitoring agency under SEBI regulations, confirmed no deviation from the stated objects of the QIP issue. The report indicates that all utilization aligns with the offer document requirements, though it notes the delay in Object 1 implementation. The monitoring agency has relied on CA certificates, bank statements, mutual fund statements, and management confirmations for verification of fund utilization.

The company's promoters include Pradeep Ghisulal Rathod, Pankaj Ghisulal Rathod, and Gaurav Pradeep Rathod, and the monitoring arrangement was established through an agreement dated July 03, 2024, coinciding with the QIP issue period.

Cello World Limited has secured regulatory approval to expand its employee stock option program, receiving in-principle clearance from India's major stock exchanges for listing additional equity shares under its employee benefits scheme.

Exchange Approvals Received

The company announced that both the National Stock Exchange of India Limited and BSE Limited have granted in-principle approval for listing equity shares under the CELLO ESOP-2025 scheme. The approvals were issued on January 05, 2026, marking a significant milestone for the company's employee incentive program.

ESOP Scheme Details

The approval covers the listing of up to a maximum of 66,26,551 equity shares with a face value of ₹5.00 each. These shares will be issued to employees of Cello World Limited upon exercise of stock options granted under the CELLO ESOP-2025 scheme.

Regulatory Compliance Requirements

Both exchanges have outlined specific conditions that must be fulfilled before the final listing approval. The key requirements include:

• Notification to exchanges under Regulation 10(c) after allotment of securities
• Receipt of all statutory and regulatory approvals from SEBI, RBI, and MCA
• Compliance with SEBI (LODR) Regulations, 2015
• Adherence to Companies Act provisions and other applicable laws
• Submission of required documentation including board resolutions and allottee details

Documentation and Next Steps

The exchanges have specified that Cello World Limited must submit certified copies of various documents, including the statement under Regulation 10(c), board resolution of allotment, and detailed lists of allottees. The company must also provide confirmation from registrar and transfer agents regarding credit to beneficiary accounts or dispatch of physical certificates.

Both NSE and BSE have reserved the right to withdraw their in-principle approval if any information submitted is found to be incomplete, incorrect, or misleading. The final trading permission will be granted upon receipt of proper notification and compliance with all stated conditions.

The approval enables Cello World Limited to proceed with its employee stock option scheme, providing a mechanism to incentivize and retain talent through equity participation in the company's growth.