Textbook publisher S Chand and Company is looking to tap India’s red hot IPO market. The New Delhi-based company, one of the largest publishers in India, is targeting a stock market listing in the next fiscal year.
We are seriously exploring an IPO next fiscal, and have already started planning for it. We estimate a requirement of about USD150 million through external and internal accruals, as we look to reach 100,000 institutions over the next five years, thereby, reaching about 100 million students
– Himanshu Gupta, joint managing director, S Chand
This is quite interesting as the remarks come on the heels of the company raising USD27 million from private equity investors such as International Finance Corporation (IFC) and Everstone Group. Everstone is an old investor in the publisher with its first investment dating back to 2012.
S Chand and Company has been active in buying out rivals while also increasing its presence in digital space. As part of its acquisition strategy, S Chand acquired a majority stake in Delhi-based publisher New Saraswati House last year. The company claims to have already invested about INR10 billion in acquiring digital and services-related properties. It hopes to generate nearly 25% of its annual revenues from digital and services vertical by 2020.
S Chand publishes a variety of educational books catering to school going students up to 12th standard (or K-12) as well as to students in colleges and universities. The company also publishes books for competitive exams. If the company goes ahead with its IPO plans, it will be the second publishing company to get listed in India after Navneet Education (formerly Navneet Publications).
2015 has been a year of private equity exits through primary market. Interestingly, a number of companies backed by Everstone have lined up IPO plans. This includes healthcare and fitness company VLCC, agri-logistics player Sohan Lal Commodity Management and commercial vehicles finance player Hinduja Leyland Finance.
Read Also: Everstone-backed VLCC files IPO prospectus