Checkout information on S Chand and Company IPO Details, Credit Rating, Capital to be raised, S Chand Draft Red Herring Prospectus filed with SEBI and also IPO Review. The IPO of S Chand will likely go live early next year. Through this IPO, the existing shareholder (Everstone Capital) of S Chand is planning to sell its Shares. In our previous posts, we have already provided information on CDSL IPO, Radio City IPO and DMart IPO.
S Chand IPO DRHP
|Download DRHP of S Chand IPO||Download|
S Chand IPO Review
|Issue Capital (approx)||Rs.600 Crore|
|Issue Date||Early 2017|
|IPO Type||Pure Offer|
|Shares for Sale||48,00,000|
S Chand IPO Managers
S Chand and Company have hired JM Financial, Credit-Suisse and Axis Capital to work on the documentation and marketing of the offering (act as IPO Managers).
Purpose of S Chand IPO
The IPO will allow PE investor Everstone to sell part of its stake in S. Chand. At least one-third of the IPO, or around Rs.200 crore, will be a secondary share sale by Everstone, while the rest will be primary capital for the company’s various requirements
Everstone invested Rs.200 crore in S Chand way back in 2012. S Chand raised a further Rs.179 crore in November 2015 from World Bank arm International Finance Corp. and Everstone.
S Chand Recent Acquisitions
In 2014, S. Chand acquired a majority stake in Delhi-based publisher New Saraswati House. Earlier, it acquired Vikas Publishing House and Madhuban Books.
In March this year, S. Chand invested in education-technology start-up Testbook.
About S Chand and Company
S Chand Group is one of India’s oldest and largest publishing and education services enterprise, founded in 1939 and based in New Delhi.
S Chand prints books for primary as well as higher education like Engineering, Commerce etc. S. Chand publishers were the first in India to get ISO 9001:2000 certification. Books of this publishing house are distributed across India and South Asia, South-East Asia, Middle East and Africa.
S Chand operates from 110 offices and branches and employs a workforce of over 2000 employees.
In recent years, S Chand group has diversified its offering after stating its aim to be a ‘knowledge corporation’. These efforts are led by its subsidiary DS Digital.
S Chand ROC Data
|Company Name||S CHAND AND COMPANY LIMITED|
|Company Category||Company limited by Shares|
|Company SubCategory||Non-govt company|
|Class of Company||Public|
|Paid up Capital(Rs)||149222480.0|
|Number of Members (Applicable in case of company without Share Capital)||0|
|Date of Incorporation||09/09/1970|
|Registered Address||RAVINDRA MANSION RAM NAGAR NEW DELHI DL 110055 IN|
|Address other than R/o where all or any books of account and papers are maintained||–|
|Whether Listed or not||Unlisted|
|Suspended at stock exchange||–|
|Date of last AGM||30/09/2015|
|Date of Balance Sheet||31/03/2015|
|Company Status(for efiling)||Active|
Directors : S Chand IPO
|DIN/PAN||Full Name||Present Residential Address|
|00053988||SAVITA GUPTA||89, OLD ISHWAR NAGAR, PANCHWATI, OKHLA MORE, NEW DELHI 110065 DL IN|
|00054015||HIMANSHU GUPTA (MD)||89, OLD ISHWAR NAGAR, PANCHWATI, OKHLA MORE, NEW DELHI 110065 DL IN|
|00226775||DESH RAJ DOGRA||Flat No.402, Somerset Bldg, AdishankaraCharya RD, CTS No 15C, Nr Hiranandani Gardens, Powa i, Mumbai 400076 MH IN|
|00282988||DINESH KUMAR JHUNJHNUWALA||B-414 Ground Floor New Friends Colony New Delhi 110065 DL IN|
|01204170||ARCHANA CAPOOR||C-221, SFS,SHEIKH SARAI, PHASE I, NEW DELHI NEW DELHI 110017 DL IN|
|01260274||SANJAY VIJAY BHANDARKAR||33, MOONREACH APARTMENTS, PRABHADEVI, PRABHA NAGAR MUMBAI 400025 MH IN|
|AEVPM1259E||SAURABH MITTAL||F 412A, Parsvnath Prestige Plot No. 002, Sector – 93A Noida 201301 UP IN|
|02249582||DEEP MISHRA||12th Floor, Fortune Heights, 29th Road, Opposite H & M Towers, Bandra (West) Mumbai 400050 MH IN|
|AWXPS9433J||JAGDEEP SINGH||A-604 DESIGNER PARK SECTOR 62 NOIDA 201301 UP IN|
|03518763||GAURAV KUMAR JHUNJHNUWALA||B-414 GROUND FLOOR NEW FRIENDS COLONY NEW DELHI 110065 DL IN|
S Chand Future Risks
One of the biggest risks being faced by S Chand is the advent of digital media in education. The publishing business accounts for 95 percent of S Chand’s revenues, digital 5 percent.
But the good news is that even in advanced overseas markets, digital education is just 20 percent of the market. Moreover, S Chand has already started its journey in the digital space.
S Chand IPO Review
It can be arguably concluded that, S Chand and Company is one of the most successful organisations in India.
The IPO of S Chand is likely to see tremendous demand from the Indian Public. S Chand is one of the very few companies that have Anti Bribery Policy of their own.
S Chand’s focus on acquiring industry leaders is a reasonable strategy because it takes a long time, between 10 and 15 years, to build content and establish a dependable brand.
The education market in India is roughly pegged at $20 billion, growing at over 30 percent. The industry’s attractiveness is obvious and S Chand is leading the pack.
But the educational publishing market, worth about $2 billion, while promising, is very fragmented. There are over 8,000 publishers but not more than 20 have a turnover of over Rs 100 crore. It is a high margin, high growth, direct-to-consumer business.
S Chand IPO will also attract many institutional investors. Based on the current demand estimates, the IPO of S Chand is likely to be over subscribed by 3-4 times.
In the recent years, if we look into the financial statements of S Chand, the revenues and PAT are very impressive for the industry.
The Profit margins are very high and the revenues of S Chand are growing every year with high returns.
S Chand is currently the market leader in the Books Publishing business and will likely keep its place over the next few years.
As discussed above. S Chand have to impress with Digital Business too. Once S Chand goes for the IPO, the shareholders expectations are likely to go higher and therefore, its becomes pretty difficult for the company to meet those.