S Chand IPO | DRHP IPO Review Status Credit Rating |

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 IPO Review Allotment Status

S Chand IPO DRHP

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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

CIN U22219DL1970PLC005400
Company Name S CHAND AND COMPANY LIMITED
ROC Code RoC-Delhi
Registration Number 005400
Company Category Company limited by Shares
Company SubCategory Non-govt company
Class of Company Public
Authorised Capital(Rs) 200000000.0
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
Email Id jsingh.del@schandgroup.com
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.