Chetana Education IPO

NiftyTrader • July 20, 2024

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Chetana Education IPO opens on July 24, 2024, and closes on July 26, 2024. The allotment for the Chetana Education IPO is anticipated to be completed on Monday, July 29, 2024. The IPO will be listed on the NSE and SME, with a tentative listing date set for Wednesday, July 31, 2024

The price band for the Chetana Education IPO is set at Rs 80 to Rs 85 per share. The IPO is a book-built issue of Rs 45.90 crores, entirely a fresh issue of 54 Lakhs shares.

Chetana Education IPO Details

IPO Date	July 24, 2024 to July 26, 2024
Listing Date	[.]
Face Value	₹10 per share
Price	₹80 to ₹85 per share
Lot Size	1600 Shares
Total Issue Size	5,400,000 shares (aggregating up to ₹45.90 Cr)
Fresh Issue	5,400,000 shares (aggregating up to ₹45.90 Cr)
Issue Type	Book Built Issue IPO
Listing At	NSE SME
Shareholding pre-issue	15,000,000
Shareholding post-issue	20,400,000
Market Maker portion	273,600 shares

Chetana Education IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	1600	₹136,000
Retail (Max)	1	1600	₹136,000
HNI (Min)	2	3200	₹272,000

Chetana Education IPO Objectives

The objectives of the Issue are:

To Meet Working Capital Requirements; and
General Corporate Purpose.
Repayment of certain borrowing availed by the Company, in part or full;

About Chetana Education Limited

Established in 2017, Chetana Education Ltd specializes in printing and publishing textbooks for the K-12 segment, catering to both the CBSE and State Board curriculums. To enhance the educational experience, Chetana Education Ltd also offers educational software and videos for teachers and students.

Chetana Education serves the Maharashtra State Board and the Central Board of Secondary Education (CBSE), providing a comprehensive range of textbooks from early pre-primary education to K-12 courses. The company has sold over 6 million books across various grade levels, including pre-primary, primary, secondary, and senior secondary. With the support of over 400 contract authors, Chetana Education Ltd produces high-quality content for its textbooks.

As of 2023, the company’s portfolio includes 700 titles under 15 different brands, such as Master Key, Self-Study, Firefly, Bright Buddies, My Skill Book, Grade Me, and QR Series. Additionally, Chetana Education has developed a wide range of digital content to enhance students’ understanding of specific subjects, ensuring a better learning experience.

The company has entered into a strategic partnership with Allern Enterprises Private Limited, an ed-tech company, resulting in the production of over 30,000 educational videos. This collaboration underscores Chetana Education Ltd’s commitment to integrating digital solutions into traditional learning methods.

Chetana Education Limited Financial Information

Chetana Education Limited’s revenue increased by 23.89% and profit after tax (PAT) rose by 75.57% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	9,475.09	8,315.08	7,605.82	6,825.10
Revenue	9,367.06	7,560.77	4,312.21	3,270.96
Profit After Tax	1,203.47	685.47	168.06	280.30
Net Worth	2,524.55	2,281.92	1,947.33	2,091.10
Reserves and Surplus	1,024.55
Total Borrowing	5,128.73	4,299.50	3,876.03	3,487.85

Chetana Education IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50% of the Net offer
Retail Shares Offered	Not less than 35% of the Net offer
NII (HNI) Shares Offered	Not less than 15% of the Net offer

Chetana Education IPO Timeline

Chetana Education IPO opens on July 24, 2024, and closes on July 26, 2024.

IPO Open Date	Wednesday, July 24, 2024
IPO Close Date	Friday, July 26, 2024
Basis of Allotment	Monday, July 29, 2024
Initiation of Refunds	Tuesday, July 30, 2024
A credit of Shares to Demat	Tuesday, July 30, 2024
Listing Date	Wednesday, July 31, 2024
Cut-off time for UPI mandate confirmation	5 PM on July 26, 2024

Conclusion

The Chetana Education IPO, opening on July 24, 2024, and closing on July 26, 2024, presents a compelling investment opportunity with a price band of Rs80 to Rs85 per share. The IPO aims to raise Rs45.90 crores through the issuance of 54 lakh fresh shares. As a well-established player in the K-12 textbook publishing sector, Chetana Education Ltd has shown significant growth in revenue and profit, emphasizing its strategic partnership with Allern Enterprises to integrate digital educational content. With plans to use the proceeds for working capital, corporate purposes, and debt repayment, the company is poised for further expansion and enhancement of its educational offerings.