S. Chand likely to launch IPO in third week of April
S. Chand and Co. is looking to file its red herring prospectus for the IPO with Sebi this week
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The initial public offering (IPO) of educational books publisher S. Chand & Co. Ltd is likely to open in the third week of April, two people aware of the development said.
“The company and its bankers have zeroed in on the third week for the IPO launch. They are targeting the 18th of April for the launch. They will be filing the red herring prospectus with the regulator this week,” said one of the two people cited above, speaking on condition of anonymity.
The Everstone Capital-backed firm has appointed investment banks JM Financial Institutional Securities Ltd, Axis Capital Ltd and Credit Suisse Securities (India) Pvt. Ltd to manage the share sale.
S. Chand filed its draft IPO prospectus with markets regulator Securities and Exchange Board of India (Sebi) on 16 December and received approval in early March.
The IPO is expected to be around Rs750 crore in size, said the second person cited above, also requesting anonymity. It includes both a primary and a secondary share sale component.
Spokespersons of S. Chand and Everstone Capital declined to comment.
As per the draft prospectus, S. Chand will issue new shares to raise around Rs300 crore, while promoters, Everstone Capital and other investors will sell some of their shares.
S. Chand plans to use the primary proceeds from the IPO to repay loans and for general corporate purposes.
In 2012, Everstone invested Rs200 crore in the Delhi-based textbook publisher for a minority stake. The company raised a further Rs179 crore in November 2015 from World Bank arm International Finance Corp. and Everstone.
As per the draft IPO papers, S. Chand recorded consolidated revenue of Rs540.6 crore in 2015-16, against Rs478.5 crore in the previous year. In 2015-16, it reported a profit of Rs46.6 crore against Rs32.7 crore the previous year.
S. Chand delivers content, solutions and services across the education life cycle, serving the K-12, higher education and early learning segments. The company offers 53 consumer brands among which are S. Chand, Vikas, Madhubun, Saraswati, Destination Success and Ignitor.
In December 2016, it bought a 74% stake in Chhaya Prakashani Pvt. Ltd, adding four more brands. In 2015-16, S. Chand sold 35.47 million copies of a total of 11,144 titles. Additionally, Chhaya sold 9.88 million copies of 433 titles in the same year. As of 31 March 2016, S. Chand had contracts with at least 1,958 authors.
So far this year, five firms have raised Rs4,172.8 crore through the IPO route, according to data from primary market tracker Prime Database. In 2016, 26 firms raised Rs26,493.8 crore through IPOs, data shows.