As on Date & Time ……………………QIB …….. NII……… RII ………. Total
Shares Offered ……………………..952,000 714,000 1,666,000 3,332,000
Day 1 – Mar 20, 2017 05:00 pm ..1.0400 .. 0.0000 …. 0.1400…. 0.3700
Day 2 – Mar 21, 2017 05:00 pm …1.9700 ..0.0400….. 0.4000 … 0.7700
Day 3 – Mar 22, 2017 05:55 pm …3.6500 ..0.2100….. 1.6300 … 1.9000
The New Delhi-based firm provides educational services across the value chain, including content and infrastructure.It sees a lot of inorganic opportunities. It has relied on inorganic growth as a key part of our growth strategy, including for its expansion into new business segments,
Issue Opens on: Mar 20, 2017
Closes on Mar 22, 2017
Issue Type: Book Built Issue IPO
Issue Size: 4,760,000 Equity Shares of Rs 10 aggregating up to Rs 238.95 Cr
Fresh Issue of 2,180,119 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
Offer for Sale of 2,579,881 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
Face Value: Rs 10 Per Equity Share
Issue Price: Rs. 500 – Rs. 502 Per Equity Share
Minimum Order Quantity: 29 Shares
Listing proporsed at: BSE, NSE
17th March – Anchor Investors
20th March – Offer Opens
22nd March – Offer Closes
28th March – Bank Holiday for Gudi Padwa
29th March – Finalisation of Basis of Allotment
29th March – Unblocking of ASBA
30th March – Credit to Demat Accounts
31st March – Listing on NSE & BSE
About the Sector :The education sector in India can be broadly classified into the formal and non-formal categories. In the Union Budget 2017-18, the Union Finance Minister has announced an allocation of Rs 796.86 billion to the education sector, reflecting a 10.1% increase over the allocation of ‘ 723.94 billion last year.
In addition, Rs 30.16 billion was allocated towards skill development and entrepreneurship
Structural changes in the Indian economy, such as rising disposable incomes and growing numbers of nuclear families, along with factors such as rising share of private institutions and enrolments, few quality educational institutions and social issues in regard to high stress on marks in the Indian education system are expected to drive the coaching industry.
The Indian test prep market is estimated at Rs 378 billion, as of 2015-16, having grown at a CAGR of approximately 14% from 2008-09, driven by factors including escalation in income levels, increased spend on education, high competition for limited seats in quality institutes and complexity of entrance exams
The Indian book publishing industry is valued at Rs 244 billion as of 2015-16, with the academic segment accounting for the largest share at Rs 202 billion (approximately 83%) and the non-academic segment accounting for the balance Rs. 42 billion
The e-commerce industry has grown substantially in the last four years. Industry revenues nearly tripled from ‘ 304 billion in 2011-12 to an estimated ‘ 849 billion in 2014-15, at a CAGR of 40%. The size of the book retail segment of the Indian e-commerce sector is estimated to be approximately Rs. 10 billion (approximately 8% of India’s total online retail segment) as of 2014-15.
The higher education segment in India is projected to see a buoyant growth trajectory up to 2019-20. GER is expected to reach 27% in 2019-20 from 22% in 2015-16, led by increased enrolments in the professional and technical courses
About the Company:It is a diversified and integrated technology-enabled provider of education products, services, content and infrastructure, with a presence across the education value chain.
Since it commenced operations in 1996, it has diversified its operations across six business segments, spanning the education value chain:
a) test preparation and training services, generally referred to as “test prep”, conducted under our wellrecognized brand Career Launcher;
b) publishing and content development, conducted under our brand GK Publications;
c) integrated business, marketing and sales services for corporates, conducted under our brand Kestone, including event management, marketing support (including digital marketing support), customer engagement, managed manpower and training services;
d) vocational training programs implemented by us under Government schemes in various States across India;
e) integrated solutions to educational institutions and universities, including business advisory and outreach support services, under our brand CL Media, as well as research incubation and support services conducted under the brand Accendere; and
f) K-12 schools operated under our brand Indus World Schools.
Under the umbrella of its brand Career Launcher, it offers reputed test prep courses for MBA, Banking and Staff Selection Commission and Law entrance examinations, as well as courses for Engineering, Medical, Civil Services, Grade VIII-XII Tuitions and International Education (GRE, GMAT and SAT), among others. During the six months ended September 30, 2016, it has 53,892 enrolments in test prep courses (including 15,491 online enrolments, referring to enrolments through its website, and 38,401 offline enrolments).
Under its brand GK Publications, it publishes niche test prep titles for popular professional and entrance examinations in India, including for Engineering, GATE, Civil Services and Banking and SCC entrances. During the six months ended September 30, 2016 and for fiscal 2016, it has released 1,851 and 1,679 titles, respectively, and sold over 0.58 million and 1.06 million copies, respectively. During the six months ended September 30, 2016 and fiscal 2016, it sold 751 and 817 titles, respectively, through the digital mode, comprising 40.57% and 48.66% of its title sales during these respective periods.
The company undertakes vocational training programs, as an implementation agency, under project tenders issued by the Central and various State Governments in India. During fiscal 2016, it had 6,663 enrolments in Government vocational training programs of varying durations, across States including Gujarat, Jharkhand, Chhattisgarh, Madhya Pradesh, Odisha and Uttar Pradesh.
It provides infrastructure and education services and license its brand Indus World School, to K-12 schools providing English-medium education. As on September 30, 2016 and March 31, 2016, 2,654 and 2,671 students, respectively, were enrolled in eight Indus World Schools, across the States of Punjab, Delhi NCR, Madhya Pradesh, Chhattisgarh, Maharashtra and Haryana.
Objects of the IPO:
1)The proceeds of the issue will be used for acquisitions and other strategic initiatives,
2) Repayment of loans, to fund working capital requirements and
3)for other general corporate purposes.
Consolidated EPs for the year ended on March 31, 2016 Rs. 18.37 .For the six months ended September 30, 2016, the basic EPS (not annualized) is Rs.10.82 and the diluted EPS (not annualized) was Rs.10.74.
The net worth of the Company as on September 30, 2016, as per its restated consolidated financial statements and restated standalone financial statements included in the Red Herring Prospectus is Rs 2,558.31 million and Rs 2,675.55 million, respectively
The net asset value per Equity Share as on September 30, 2016, as per its restated consolidated financial statements and restated standalone financial statements included in the Red Herring Prospectus is Rs 214.27 and Rs 224.09, respectively
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Satya Narayanan R
R Gautam Puri
Lead Manager :Kotak Mahindra Capital Co.
Registrar: Karvy Computershare Private Limited