S CHAND IPO –A short review

Taken from our blog,”Brink of economic thoughts”

S CHAND IPO –A short review

 

One of the most significant and pioneers of book publications in India, S.Chand will now be getting enlisted into the NSE/BSE exchanges.S Chand has held a highly prominent space in the Indian publishing industry. The book building issue, initiated with a price band of Rs 660-670, aims to raise Rs 717-728 crore.Amidst the reasons which have been mentioned for going public have been

 

  1. Repayment of loans availed by the Company and one of their Subsidiaries, EPHL, which were utilized towards funding the acquisition of Chhaya;
    2. Repayment/prepayment in full or in part, of certain loans availed of by the Company and their Subsidiaries, VPHPL and NSHPL; and
    3. General corporate purpose.

S Chand  started operating since 1970 and develops content in education K12,{1-12TH grade education, a term derived from USA}.

 

Company has been involved into publishing books for children, schools, colleges, and universities, export, and import of various school curriculum books and other literary work; also selling digital content and interactive learning systems to schools and running pre-schools.

The company has continued to  provide digital data management services and digital content books to schools and colleges; solutions for higher education in colleges, universities, and technical institutes editing and proof reading, and cover designing services of books, journals, tabloids, magazines, bulletins, brochures, and periodicals in the form of hard copy, compact disks, and e-forms.

S Chand And Company Ltd offers in around 53 consumer brands across knowledge products and all of the services include S.chand, Vikas, Madhubun, Saraswati, Destination Success and Ignitor.

Amidst the strategy to further diversify the company’s profile and operating area with broadening of the existing customer base the company has been also exporting its printed and digital content to Asia, the Middle East, Africa, and internationally.

S Chand has benefitted majorly as of the booming education sector of India. The company has had very strong presence in the ISCE/CBSE school curriculum.

 

The initial public offering of textbook publisher did see solid investor demand as it was oversubscribed 59.28 times on the last day of offer. It was one of higher rate of oversubscription. The IPO received bids for 45, 56, 00,794 shares against the total issue size of 76, 85,284 shares,

JM financial securities,Axis Capital and Credit Suisse securities were the lead promoters of the issue.

Interesting will be to see the response received when the issue goes for trading on NSE/BSE floors from the market players. Such a huge subscription clearly shows that the issue has been considered promising and has been widely welcomed .

 

Harsh Vardhan Pathak

 

 

{S Chand has been one of leading school book curriculum provider in India. It has enlisted for being public and 26th-28th April had been the date when the IPO was to  be subscribed. This short review looks into the 3 days of it getting enlisted, a little study of peer and evaluations and subscription data. The review has been prepared by study of various online reports/news websites/capital markets reviews generating websites and review generated within last few days about the IPO.}

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