Trimming early gains, shares of textbook publisher S Chand and Company ended nearly 1% higher over the issue price of Rs 670 in its debut trade on Tuesday. After listing at Rs 707, up 5.52%, the stock gave up most of its initial gains and ended at Rs 675.85, a gain of 0.87% on BSE.
During the day, it touched a high of Rs 707 and a low of Rs 658. On NSE, the company’s stock went up by 0.89% to settle at Rs 676. It commands a market valuation of `2,344.88 crore on BSE. The initial public offering (IPO) of S Chand was subscribed 59.3 times with investors bidding for 45.61 crore shares of the 76.85 lakh on offer.
The education content company has priced its IPO aimed at raising Rs 728.55 crore. The shares have a face value of Rs 5. The IPO comprises fresh issuance of shares worth `325 crore and an offer for sale (OFS) for Rs 403.55 crore.
S Chand’s revenues and earnings have seen a compounded annual growth rate of 33% over the fiscal year 2012-2016 period. The company aims to reduce its debt by 75% from the IPO proceeds. It also sees some opportunities in the unorganised space for acquisitions. Last year, the company had acquired 74% of the outstanding share capital of Chhaya Prakashani.
The education publishing business is highly seasonal in nature. The company derives around 75% of its annual revenue in Q4 quarter, with March month contributing around 40% of the top-line, the company said. It has presence in the CBSE/ICSE affiliated schools with increasing presence in the state board affiliated schools across India.
(With PTI inputs)