After stellar FY25 results; This consumer electronics company’s promoters sold 1,00,00,000 shares; Reinvest proceeds to boost growth and liquidity, Retain 45.8% stake
The stock is up 78.3 per cent from its 52-week low of Rs 22.07 per share and has given multibagger returns of 288 per cent since its listing on NSE in September 2023.
On Thursday, shares of Cellecor Gadgets Limited plunged 1.63 per cent to Rs 39.35 per share from its previous closing of Rs 40 per share. The stock’s 52-week high is Rs 81.50 per share and its 52-week low is Rs 22.07 per share.
The promoters of Cellecor Gadgets Limited, a rapidly growing Indian electronics brand, have announced a strategic decision to sell a portion of their shareholding through an open market transaction. This move, while personally significant, is intended to benefit the company and its stakeholders by ensuring a continued high-growth trajectory without capital constraints. The promoters will divest 1 crore shares, with the entire proceeds being reinvested back into the company as equity and interest-free unsecured loans, underscoring their unwavering commitment to Cellecor's long-term success and financial stability.
This decision reflects the promoters' singular dedication to Cellecor Gadgets Limited, as they have no other business interests or affiliations. Their entire entrepreneurial energy and financial net worth are fully committed to the company's growth, a commitment demonstrated by past actions such as mortgaging personal properties to secure lower-interest working capital loans for the company. These high-stakes decisions highlight their deep conviction in Cellecor's future and their willingness to assume personal financial risk to ensure uninterrupted operations and sustained growth, aligning completely with the company's vision and long-term objectives.
The planned infusion of capital will proactively strengthen Cellecor's balance sheet, reduce reliance on external debt, and enhance financial agility to meet the demands of a rapidly expanding market. This will enable the company to fund working capital, scale operations, improve margins, and accelerate innovation. Furthermore, the transaction is expected to boost stock liquidity and attract broader institutional participation, aligning with best practices in corporate governance and shareholder value creation. Following the transaction, expected in the next couple of days, the promoter family will retain a 45.8 per cent equity stake, with all requisite disclosures to be made in full compliance with SEBI and stock exchange regulations.
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About the Company
Cellecor Gadgets Limited began its journey in 2012 as M/s Unity Communications, a proprietorship firm founded by Mr. Ravi Agarwal, focusing on selling electronics under its own brand. The company has since grown into a prominent name in the consumer electronics industry, known for its commitment to providing affordable, quality products. Cellecor achieves this through a sustainable business strategy that involves synergistically combining the demand for electronic products with a modern approach to sourcing, production, and marketing. Today, their diverse product range includes mobile phones, smart TVs, various audio devices, smartwatches, and home appliances.
Results: According to half-yearly results, the net sales increased by 106 per cent to Rs 600.23 crore, Profit before tax (PBT) increased by 79 per cent to Rs 21.76 crore and net profit increased by 79 per cent to Rs 16.28 crore in H2FY25 compared to H2FY24. In its annual results, the net sales increased by 105 per cent to Rs 1,025.95 crore, Profit before tax (PBT) increased by 91 per cent to Rs 41.43 crore and net profit increased by 92 per cent to Rs 30.90 crore in FY25 compared to FY24.
The company's shares have an ROE of 25 per cent and an ROCE of 24 per cent. As of March 2025, the promoters own 49.64 per cent of the company, FIIs own 3.27 per cent, DIIs own 0.28 per cent and the public owns 46.81 per cent. The stock is up 78.3 per cent from its 52-week low of Rs 22.07 per share and has given multibagger returns of 288 per cent since its listing on NSE in September 2023.
Disclaimer: The article is for informational purposes only and not investment advice.