Delhi-based S Chand, one of the leading publishers of educational books in India, has announced that the company is going to launch its initial public offering (IPO) on 26 April 2017. The offer will be available for three days — 26 to 28 April. A price band of Rs 660-670 per share has been fixed for its initial share sale.
According to new reports, the company will raise Rs 325 crore in primary capital through the IOP. Additionally, existing shareholders of the company, including Everstone Capital, which has 32.27% stake in the company, will collectively sell around six million shares worth Rs 403.5 crore, taking the total IPO size to Rs 728.5 crore.
According to Samir Khurana, group head, strategy and investments at S Chand, out of the primary proceeds, the company will spend Rs 255 crore to repay the debt the company and its subsidiary Eurasia Publishing House availed for funding the acquisition of Kolkata-based Chhaya Prakashani. In December 2016, S Chand acquired 74% stake in Chhaya Prakashani adding four Chhaya brands to its portfolio.
The company will also repay some loans availed by other subsidiaries such as New Saraswati House and Vikas Publishing House.
S Chand has appointed investment banks JM Financial Institutional Securities, Axis Capital and Credit Suisse Securities (India) to manage the share sale. It had filed its draft IPO prospectus with markets regulator Securities and Exchange Board of India (SEBI) on 16 December and received approval in early March.
As of 31 December, the company offered 55 consumer brands across knowledge products and services, including S Chand, Vikas, Madhubun, Saraswati, Destination Success and Ignitor.
In 2012-13, S Chand acquired Vikas Publishing to bolster…