Education-focused publishing house S Chand & Company is holding a board meeting on Wednesday to decide on the price band and schedule of its initial public offering (IPO).
The 60-year-old firm is looking to file a Red Herring Prospectus (RHP) with the markets regulator SEBI this week and intends to hit the market before month-end, sources close to the development said.
The company is now looking to raise about Rs 650-750 crore through an IPO, paving way for the partial exit of private equity firm Everstone Capital.
“The company is planning a fresh issue of Rs 300 crore and an offer for sale of about 6 million shares by promoter and PE investors in the range of Rs 450 crore,” one of the sources said.
In 2012, S Chand had raised Rs 200 crore from Everstone Capital in lieu of a 31 per cent stake and later in 2015, it raised an additional $27 million from Everstone and IFC to scale up its presence in the educational content space.
S Chand — which provides educational content for Kindergarten to Std XII, higher education and early-learning segments — had received regulatory clearance for the IPO with SEBI’s observation on March 3.
The New Delhi-headquartered firm had filed its Draft Red Herring Prospectus (DRHP) with SEBI on December 19, 2016.
JM Financial, Axis Capital and Credit Suisse are the bankers to the issue. S Chand will use Rs 240 crore of the proceeds to repay a loan, much of it was used to finance its acquisition of Chhaya Prakashani, and the remaining would be used for organic growth.