IPO: S Chand and Company Limited

New Delhi-based education publishing house S Chand and Company Limited is planning to raise about Rs. 728 crore through an initial public offering (IPO).

• The company plans to raise up to INR 300 crore by issuing fresh shares.
• The IPO will also include 6,023,236 shares to be sold under the Offer for Sale (OFS) route.

Company Background

Incorporated in the year 1970, S Chand and Company Limited operates as an education content company in India.

Working Area

The Company develops and delivers content, solutions, and services in the education K-12, higher education, and early learning segments.

Company Is Mainly Involved In –

• Publishing, printing, sale, purchase, export, and import of various books and other literary work;
• Agency ship and distribution of publishers for books and other literary work;
• Selling of educational toys; and publishing books for children, schools, colleges, and universities,
• Digital content and interactive learning systems to schools and running pre-schools.

The Company Also Provides –

• Digital data management services and digital content books to schools and colleges;
• Solutions for higher education in colleges, universities, and technical institutes; and
• DTP printing, DTP jobs, page making, editing, and proofreading.

The company also covers designing services of books, bulletins, brochures, journals, magazines, tabloids, and periodicals in the form of hard copy, compact disks, and e-forms.

Company Promoters

(1) Mr. DineshKumar Jhunjhnuwala

(2) Ms. Neerja Jhunjhnuwala

(3) Mr. Himanshu Gupta

IPO Details

IPO Date & Listing

Financial Performace

Revenues:

The Company shows impressive revenue growth in recent years. Topline has been increasing regularly for the last four years and jumped from INR 171.32 crore in FY2012 to INR 282.25 crore for the year ended March 2016.

Profits:

Though the company has shown impressive growth in revenue, the company has registered uneven profits in these years. Starting from INR 8.853 crore of profit in FY2012, the company’s earning improved to INR 16.48 crore in FY2016.

CONCLUSION –

Considering company’s valuation and long-term perspective, FinBlab recommends DO NOT SUBSCRIBE ratings on this issue.

Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.