Text book publisher S Chand files papers for IPO

Proceeds from the issue would be utilised for repayment and prepayment of loans as well as for general corporate purposes.
Image for representational purpose only.
Image for representational purpose only.

NEW DELHI: Leading text book publisher S Chand and Company has filed draft papers for initial public offer (IPO) that includes fresh issue worth Rs 300 crore.

Its existing shareholders, including private equity fund Everstone and International Finance Corporation (IFC), would also be offloading little over 60 lakh shares through the Offer for Sale (OFS) route.

The initial share would have fresh issue to the tune of Rs 300 crore as well as the OFS, according to the company's Draft Red Herring Prospectus (DRHP) filed with market regulator Sebi.

Proceeds from the issue would be utilised for repayment and prepayment of loans as well as for general corporate purposes. The loan amount includes those taken by its subsidiary for funding the acquisition of Chhaya Prakashani.

Earlier this month, the company acquired 74 per cent of the outstanding share capital of Chhaya Prakashani Pvt Ltd.

The OFS would for up to 6,023,236 equity shares, including sale of 4,814,736 shares by Everstone. Himanshu Gupta, Dinesh Kumar Jhunjhnuwala, Neerja Jhunjhnuwala, Nirmala Gupta, Savita Gupta, Ankita Gupta and Gaurav Kumar Jhunjhnuwala would also be selling their shares.

The company offers 53 consumer brands across knowledge products and services including S Chand, Vikas, Madhubun, Saraswati, Destination Success and Ignitor.

A raft of companies have tapped the capital market so far this year with their IPOs and many are in the final stages of share sale.

As many as 26 firms have managed to collectively raise over Rs 26,000 crore through their respective IPOs this year, which is more than double the Rs 13,564 crore grossed by 21 issuers in 2015.

Further, IPOs worth Rs 12,500 crore are already at final stages of hitting the market.

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