RR: The Management has identified Reliable Persons from different cities as Regional Reporters. It is expected that they will bring in information about local trends. The Admin believes that this is unique thing and the forum members will love the same.
This will boost our Image as The Class Discussion forum.
Listing expectations: Our forum member RKS expects listing to be around Rs. 850/880
Grey Market Report
on 22 April 2017 @ 11.00am : GMP Rs. 180-182 & kostak trades at Rs. 550-575.
Volume sharply improved
Issue Opens on: 26 April 2017
Issue Closes on: 28 April 2017
Issue Type: Book Built Issue IPO
Issue Size: 1,11,95,650 Equity Shares
Fresh Issue of [.] Equity Shares of Rs 5 aggregating up to Rs 300.00 Cr
Offer for Sale of 6,023,236 Equity Shares of Rs 5 aggregating up to Rs [.] Cr
Face Value: Rs 5 per Equity Share
Issue Price: Rs.660 – Rs.670 per Equity Share
Market Lot: 22 shares
Listing At: NSE, BSE
25th April – Anchor Investors
26th April – Offer Opens
28th April – Offer Closes
01st May – Market Holiday for Maharashtra Day
04th May – Finalisation of Basis of Allotment
05th May – Unblocking of ASBA
08th May – Credit to Demat Accounts
09th May – Listing on NSE & BSE
About the Industry:
India is one of the fastest growing economies in the world. Over the past three years, India has experienced an average annual increase in its GDP of approximately 7.0%, a 7.6% real GDP growth rate in 2015 – 2016 and a World Bank real GDP growth forecast of greater than 8% in 2016 – 2017
The education sector has been a key beneficiary of India’s economic growth and favorable demographic profile, illustrated by the fast growth of education amongst other discretionary expenditure items. The share of spend on education has increased from 4% in 2005 to 5% in 2015.
The education sector in India is broadly classified into formal and informal segments, both of which are supported by the ancillary segment. The formal education segment comprises both K-12 schools (including secondary and senior secondary schools) and higher education institutions (colleges, higher education institutes). The informal segment comprises test preparation, tutoring, early education and vocational/skill-based training
segments. The informal segment does not have restrictions on operating on a ‘for profit’ basis and does not have restrictions on profit distribution.
The formal, informal and ancillary segments are collectively estimated at US$90 billion as of 2015 and expected to reach US$188 billion by 2020. India has a large population in the education age bracket, consisting of students aged 5-24, which stood at approximately 520 million as of 2016. This is expected to grow to approximately 534 million in 2020. In addition to the growing population, the reduction in drop-out rates is expected to contribute to increase in market size.
The Right to Education Act (RTE Act) is one of the hallmarks of the Government of India’s policy which emphasizes the need to implement educational initiatives that leads to increased enrollment ration across all education segments in the coming years. The focus of the Government of India is to enroll ‘out of school’ children, reduce dropouts and implement as clearly set out in the objectives stipulated in the RTE Act.
About the Company:
S Chand is a leading Indian education content company in terms of revenue from operations in Fiscal 2016. (Source: Nielsen Research Report). It delivers content, solutions and services across the education lifecycle through its K- 12, higher education and early learning segments. It is the leading K-12 education content company in terms of revenue from operations in Fiscal 2016, according to Nielsen, with a strong presence in the CBSE/ICSE affiliated schools and increasing presence in the state board affiliated schools across India. It offers 53 consumer brands across knowledge products and services including S. Chand, Vikas, Madhubun, Saraswati, Destination Success and Ignitor. The Company believes that these brands have benefited by its strong brand management philosophy which embraces consistent efforts to upgrade content quality and to update content regularly. Further, in December 2016, it has acquired 74% of the outstanding share capital of Chhaya Prakashani Private Limited and it now offers four Chhaya brands including Chhaya and IPP. Its textbooks and instructional materials are supported by its offering of technology driven methods of education and digital learning. The company sells its knowledge products and services to schools and to students across their lifecycle through our extensive pan-India network of sales offices, distributors and dealers.
Content creation Team:
In Fiscal 2016, it 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. Its top ten best-selling titles accounted for sales in Fiscal 2016 of 2.96 million copies, and 15 of its authors have each sold over one million copies of their titles during the last five fiscal years.It has a contractual relationship with at least 1,958 authors (including co-authors) for over five years as on March 31, 2016. Additionally, Chhaya has contractual relationships with at least 24 authors (including co-authors) for over five years as on March 31, 2016. It uses its 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 it
retain and attract the best authors.
Wide Distribution network:
As of June 30, 2016, its distribution and sales network consisted of 4,907 distributors and dealers, and we had an in-house sales team of 697 professionals working from 58 branches and marketing offices across India. Its Chhaya Acquisition has expanded its presence in Eastern India to include an additional 746 distributors and dealers as of December 1, 2016. The Company considers its schools, teachers and student customers to be its “touch points”, and its sales teams are responsible for forging relationships with its customers across its K-12, higher education and early learning businesses. In its K-12 business, the company markets its content to educators and schools to place its products on prescribed and recommended reading lists. In higher education and early learning, it markets the products directly to distributors, dealers and consumers. It has developed a robust supply chain by rationalizing and integrating our procurement, manufacturing and logistic capabilities. In Fiscal 2016, over 85% of its printing requirements were met by its facilities located in Sahibabad and Rudrapur. Its print facilities and distribution networks are supported by wide logistics network, which as on June 30, 2016, comprised of 42 warehouses located in 19 states to allow coverage across India. The paper purchases are integrated, which helps it to achieve economies of scale and improves its bargaining power with raw material suppliers.
What is the significance of this Company ?
Since the establishment of our predecessor S. Chand & Co. over seventy years ago, its operations cover the entire student lifecycle: early learning, K-12, and higher education. Over the last few years, it has focused on improving its digital offerings in each of the business segments.
Mr. Dinesh Kumar Jhunjhnuwala
Ms. Neerja Jhunjhnuwala
Mr. Himanshu Gupta
Main Objects of the IPO:
a)Repayment of loans availed by the Company and one of their Subsidiaries, EPHL
b)Repayment/prepayment in full or in part, of certain loans availed of by the Company and its 2 Subsidiaries
In Fiscal 2016, it sold 2,920 titles and over 2.86 million books in our college and university/technical and professional business. College and university/technical and professional contributed to 13.09% of its consolidated operating revenue in Fiscal 2016, amounting to ¹ 703.81 million. From Fiscal 2012 to Fiscal 2016, its college and university/technical and professional consolidated operating revenue grew at a CAGR of 8.43%.
(1) The consolidated restated revenues grew at a CAGR of 32.64% over the past five Fiscal years from ¹ 1,746.44 million in Fiscal 2012 to ¹ 5,406.27 million in Fiscal 2016;
(2) The consolidated restated EBITDA grew at a CAGR of 47.47% over the past five Fiscal years from ¹ 271.07 million in Fiscal 2012 to ¹ 1,282.16 million in Fiscal 2016.
(3) The consolidated restated profit after tax and before minority interest grew at a CAGR of 33.48% over the past five Fiscal years from ¹ 146.91 million in Fiscal 2012 to ¹ 466.42 million in Fiscal 2016;
GMP Trend Report
on 22 April 2017 @ 11.00am : GMP Rs. 180-182 & kostak trades at Rs. 550-575
on 21 April 2017 @ 11.00am : GMP Rs. 175-180 & kostak trades at Rs. 500.
on 20 April 2017 @ 10.00am : GMP Rs. 150-155 & kostak trades at Rs. 475-575
on 18April 2017 @ 11.00am : GMP Rs. 185-190 & kostak trades at Rs. 525-575
on 17April 2017 @ 11.00am : GMP Rs. 185-190 & kostak trades at Rs. 525-575
on 15April 2017 @ 05.00pm : GMP Rs. 125 & kostak trades at Rs. 450.Volumn improves
on 13April 2017 @ 11.00am : GMP Rs. 90 & kostak trades at Rs. 450.Volumn improves