S Chand and Company Ltd is an education content company in India. They circulate the educational content like solution and services across educational lifecycle. S Chand and Company are coming with an IPO which will hit the primary market on 26th April 2017 and closes on 28thApril 2017. The company aims to raise around Rs. 730 crore by offering shares at Rs. 660-Rs.670 per Equity Share.
The company are coming with a fresh public issue of 6,023,236 equity shares at Rs 5 Per Equity Share and rest are from existing shareholders.
S Chand and company were incorporated as ‘S. Chand & Co. Private Limited’ on September 9, 1970. They are Indian education content company and deliver content, solutions and services across the education lifecycle through their K- 12, higher education and early learning segments.
They offer 53 consumer brands across knowledge products and services including S. Chand, Vikas, Madhubun, Saraswati, Destination Success and Ignitor. They believe that these brands have benefited by their strong brand management philosophy which embraces consistent efforts to upgrade content quality and to update content regularly.
They used to sell their knowledge products and services to schools and students across their lifecycle via their extensive pan-India network of sales offices, distributors and dealers.
The firm’s distribution and sales network consisted of 4,907 distributors and dealers, and they had an in-house sales team of 697 professionals working from 58 branches and marketing offices across India. As of December 1, 2016 their Chhaya Acquisition has expanded their presence in Eastern India to include an additional 746 distributors and dealers.
They consider their schools, teachers and student customers to be their “touch points”, and their sales teams are responsible for forging relationships with their customers across K-12, higher education and early learning businesses. In K-12 business, they market their content to educators and schools to place their products on prescribed and recommended reading lists. In higher education and early learning, they market their products directly to distributors, dealers and consumers
They sold copies of different types of titles like 35.47 million copies of a total of 11,144 titles, Chhaya sold 9.88 million copies of 433 titles. Their top ten best-selling titles accounted for sales in Fiscal 2016 of 2.96 million copies, and 15 of their authors have each sold over one million copies. They used their 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 us retain and attract the best authors.
S Chand and Company Ltd has 12 Subsidiaries:
- Blackie & Son (Calcutta) Private Limited
- BPI (India) Private Limited
- Chhaya Prakashani Private Limited
- DS Digital Private Limited
- Eurasia Publishing House Private Limited
- Indian Progressive Publishing Co. Private Limited
- Publishing Services Private Limited
- New Saraswati House (India) Private Limited
- Nirja Publishers & Printers Private Limited
- S Chand Edutech Private Limited
- Safari Digital Education Initiatives Private Limited
- Vikas Publishing House Private Limited
They believe the following are their competitive strengths:
- Comprehensive consumer focused knowledge content player with touch points across consumer lifecycle.
- Strong brand equity with high consumer recall.
- Leading position in the K-12 market.
- Strong integrated in-house printing and logistic capabilities.
- Pan-India sales and distribution network driving deep market reach
- Focused digital and technology platform
- Experienced management and leadership team.
Objects of the Issue:
The object of the issue is:
- Repayment of loans availed by the Company and one of their Subsidiaries, EPHL, which were utilized towards funding the acquisition of Chhaya.
- Repayment/prepayment in full or in part, of certain loans availed of by the Company and their Subsidiaries, VPHPL and NSHPL.
- General corporate purpose.
The company has reported a CAGR of 33% for last 4 years. Consolidated revenue have grown at around 32%. This shows that they have a strong growth happening for last 4 years.
Competition and Valuation
Navneet Education is the nearest listed company and the stock is trading at 25.5 times it trailing 12 month Earnings per share. The S Chand IPO is similarly priced to the competition.
Find about S Chand allotment status here.
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