S. Chand and Co. Ltd., an educational books publishing company, announced on Wednesday that it is set to hit the primary market with its initial public offering (IPO) on 26 April. The price band of Rs 660-670 per share has been fixed for the share sale.
Investments banks including Financial Institutional Securities Ltd, Credit Suisse Securities (India) Pvt. Ltd and Axis Capital Ltd are appointed to manage the IPO.
With the offer Everstone Capital-backed company aims to raise Rs.325 crore. Everstone has 32.27% stake in S. Chand.
As quoted in one of the reports, company's Group Head- Strategy and Investments, Mr. Samir Khurana said that Rs. 255 crore garnered from the offer shall be spent towards repayment of debt. Through the proceeds, S. Chand aims at repaying loans which the company and its subsidiary Eurasia Publishing House Pvt. Ltd, has availed for acquiring Chhaya Prakashani Pvt. Ltd. Also, S.Chand will repay loans taken by its other subsidiaries including the likes of Vikas Publishing House Pvt. Ltd. and New Saraswati House (India) Pvt. Ltd.
Through the acquisition of Chhaya Prakashani in December 2016, S.Chand added four of the Chhaya brands in its portfolio.
Khurana is also reported to be quoted as saying: "We will continue to look to grow through the inorganic growth route in the future too. The company has spent close to Rs460 crore on acquisitions in the past.