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S Chand IPO oversubscribed 1.43 times on Day 2

LiveMint logoLiveMint 27-04-2017 PTI

New Delhi: The initial public offering (IPO) of textbook publisher S Chand and Co. Ltd was oversubscribed 1.43 times till afternoon trade on the second day of the offer on Thursday.

The IPO received bids for 1,09,64,624 shares against the total issue size of 76,85,284 shares, data available with the NSE till noon showed. The portion set aside for qualified institutional buyers (QIBs) was oversubscribed 2.68 times, while that for non- institutional investors was subscribed 24%.

The retail investor category was also oversubscribed 1.14 times. S Chand had raised nearly Rs219 crore from anchor investors on Tuesday. The price band for the offer is Rs660-670 a share.

The IPO comprises fresh issue of equity shares up to Rs325 crore. Besides, existing shareholders of the company, including Everstone Capital, would collectively sell 6,023,236 shares worth Rs403.5 crore, taking the total IPO size to Rs728.5 crore. The initial share sale would close on Friday. Proceeds from the issue would be utilised for repayment and prepayment of loans as well as for general corporate purposes.

The loan amount includes those taken by its subsidiary for funding the acquisition of Chhaya Prakashani. JM Financial Institutional Securities, Axis Capital and Credit Suisse Securities (India) Pvt. Ltd are the merchant bankers to the offer.

Last year, the company had acquired 74% of the outstanding share capital of Chhaya Prakashani Pvt. Ltd. The company offers 53 consumer brands across knowledge products and services, including S Chand, Vikas, Madhubun, Saraswati, Destination Success and Ignitor.

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