S Chand and Company IPO Review – Should you Invest?

Last updated on April 28th, 2017

  S Chand And Company Limited IPO Review

One of the leading education content company of India, S Chand and Company is coming up with Initial Public Offer. We try to bring out the important information about the S Chand and Company IPO like price bands, issue dates, financial performance, subscription details and Grey market Premium in this review.

 

  S Chand And Company IPO : Important figures and schedule

S Chand And Company Limited

Issue Period Issue Opens On: Wednesday, April 26, 2017
Issue Closes On  : Friday, April 28, 2017
Price Band Rs.660 – 670
Bid Lot 22 Equity Shares and multiple thereof
Issue Size ( in Rs.) Rs.722.53 – 728.56 Crores
Issue size (in Shares) Fresh Issue of Equity shares aggregating upto Rs.325 Crore
Offer for sale of 6,023,236 Equity Shares
                       Issue Structure 
QIB 50% of the Offer (5,436,991 – 5,473,739 shares) (Rs.361.27 – Rs.364.28 Cr)
NIB 15% of the Offer (1,631,097 – 1,642,122 shares) (Rs.108.38 – Rs.109.28Cr)
Retail 35% of the Offer (3,805,894 – 3,831,617 shares) (Rs.252.89 – Rs.254.99 Cr)
Registrar     Link Intime India Pvt. Ltd.
Draft Prospectus    Draft Red Herring Prospectus

 

  S Chand and Company Background Information

s-chand-and-company-ipo-review

  • Incorporated on September 9, 1970, S Chand And Company Limited is one of the Leading Book Publishing Company in India.
  • Company’s operations comprises of publishing of Educational Books with product ranging from School books, Higher Academics books, Competition & Reference books, Technical & Professional books and Children books. The company has a strong presence in the CBSE/ICSE affiliated schools and increasing presence in the State Board affiliated schools across India. 
  • S Chand & Company is the leading K-12 education content company in terms of revenue from operations in Fiscal 2016,  The company offer 53 consumer brands across knowledge products and services including S. Chand, Vikas, Madhubun, Saraswati, Destination Success and Ignitor.
  • S Chand delivers content, solutions and services across the education lifecycle through their K-12, Higher Education and Early Learning Segments.
  • In December 2016, S Chand acquired Chhaya Prakashani Pvt. Ltd , and the company now offer 4 Chhaya brands including Chhaya and IPP.
  • The company has set up their printing facility at Sahibabad and Rudrapur. These printing facilities have 18 printing presses and handled 85.56% of their printing requirements in Fiscal 2016.
  • In Fiscal 2016, 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 Fiscal 2016. 

  Information about S Chand & Company and its promoters

  •  S Chand And Company Limited  was incorporated as ‘S. Chand & Co. Private Limited’ on September 9, 1970.  The company was converted into a public limited company on September 8, 2016. Company’s operations comprises of publishing of educational books with product ranging from school books, higher academics books, competition & reference books, technical & professional books and children books.
  • On December 5, 2016, S Chand acquired 74% equity in Chhaya Prakashani Pvt. Ltd. (referred to as, which has with effect from that date become a subsidiary of the Company. They are obligated to acquire the remaining 26% of the outstanding share capital of Chhaya Prakashani Private Limited on or after November 15, 2018.

 

  • Mr. Desh Raj Dogra is the Chairman and Independent Director of the company. He has over 38 years of experience in financial sector and credit administration. He has been associated with the company since 2016.
  • Mr. Himanshu Gupta is the Managing Director of the company. He has been associated with the company since 2000 and accordingly, has over 15 years of experience in the knowledge products and services industry. He was the vice president (south) of the Federation of Indian Publishers for the year 2012-2013. He is a recipient of ‘Young Publisher Award’ by the Federation of Educational Publishers in India for the year 2011.
  • Mr. Dinesh Kumar Jhunjhnuwala is an Executive Director of the company. He has been associated with the company since 2004 and accordingly, has over 11 years of experience in the knowledge products and services industry.
  • Mr. Gaurav Kumar Jhunjhnuwala, Ms. Savita Gupta, Mr. Deep Mishra are the Non-Executive Directors and Ms. Archana Capoor, Mr. Sanjay Bhandarkar are the Independent Directors of the company and has over 20 years of experience in respective field.

 

  S Chand and Company : Business Overview

  • S Chand and Company Ltd is the leading Indian education content company in terms of revenue from operations in Fiscal 2016 according to Nielsen Research Report, with a strong presence in the CBSE/ICSE affiliated schools and increasing presence in the state board affiliated schools across India.
  • S Chand delivers content, solutions and services across the education lifecycle through their K-12, higher education and early learning segments. S Chand is the leading K-12 education content company in terms of revenue from operations in Fiscal 2016,  The company offer 53 consumer brands across knowledge products and services including S. Chand, Vikas, Madhubun, Saraswati, Destination Success and Ignitor.
  • Further, in December 2016, S Chand acquired 74% of the outstanding share capital of Chhaya Prakashani Pvt. Ltd, and the company now offers 4 Chhaya brands including Chhayaand IPP. Their textbooks and instructional materials are supported by the offering of technology driven methods of Education and Digital Learning. S Chand sell their knowledge products and services to schools and to students across their lifecycle through their extensive pan-India network of sales offices, distributors and dealers.
  • In Fiscal 2016, 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 Fiscal 2016. The top ten best-selling titles accounted 2.96 million copies sales in Fiscal 2016 and 15 of their authors have each sold over 1 million copies of their titles during the last 5 fiscal years.
  • The company has a contractual relationship with at least 1,958 authors (including co-authors) and additionally, Chhaya has contractual relationships with at least 24 authors (including co-authors) for over 5 years as on March 31, 2016.
  • S Chand use their track record of progressing authors’ careers and providing on-going editorial team support to authors for creating new products and solutions and refreshing existing products to help them retain and attract the best authors.
  • As of December 31, 2016, company’s distribution and sales network consisted of 4,932 distributors and dealers, and they had an in-house sales team of 838 professionals working from 52 branches and marketing offices across India
Product Offering Brand details
K-12 Print/Hybrid S Chand, Madhuban, Saraswati, Chhaya, IPP
Digital Destination Success, Mystudygear, Intellitab, Ignitor, Flipclass
Higher Learning Test Preparation S Chand, Testbook, Online Tyari
Print/Hybrid S Chand, Vikas
Early Education Education Kit BPI, Smartvity, RiseKids
Pre-school activity  

  

  S Chand and Company : Financial Details

                                                    S Chand consolidated financial performance (in Cr)
FY2012 FY2013 FY2014 FY2015 FY2016
Total revenue 174.6 281.5 370.9 478.5 540.6
Total expenses 147.5 221.7 291.2 374.5 412.4
Profit after tax 14.7 32 42.6 32.8 46.6

 

  S Chand and Company IPO Subscription Details

Please check below table at the end of each day to know the subscription details      

Category                               Subscription (No. of times)
Day 1 (26 April) Day 2 Day 3
QIB  0.60  2.68
NII  0.23  0.32
Retail  0.60  2.24
Total  0.52  1.96

  S Chand and Company Contact Details

S Chand & Co. Pvt Ltd
A-27, 2nd Floor, Mohan Cooperative Industrial Estate
New Delhi 110 044

Phone: +91 11 4973 1800
Fax: +91 11 2367 7446
Email: [email protected]
Website: www.schandgroup.com


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  S Chand and Company IPO Allotment Status

If you have already applied for this IPO, please check your S Chand and Company IPO allotment Status here

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Disclaimer: The information is sourced from company’s DRHP and this article should not be considered as an investment advice. In case you are interested in applying to this IPO, we recommend you to contact your advisor for the same. We cannot be held liable for any loss arising due to investment made as per this article.

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