Chetana Education IPO price band set at ₹80-85 per share; SME IPO to open on July 24

Chetana Education IPO: The initial public offering (IPO) of textbooks publishing company Chetana Education Ltd is set to open for subscription on Wednesday, July 24, and close on Friday, July 26.

Chetana Education IPO price band has been set at ₹80 to ₹85 per share. The IPO lot size is 1,600 shares and the retail investors need to contribute a minimum of ₹1.36 lakh for an application.

The IPO allotment is likely to be finalised on July 29 and the IPO listing date is July 31. The equity shares of Chetana Education Ltd will be listed on NSE SME. The shares will be credited to the demat accounts of the allottees on July 30 and the company will issue refunds to unsuccessful bidders on the same day.

The company plans to raise ₹45.90 crore from the SME IPO that comprises issuance of 54 lakh new equity shares. In the Chetana Education IPO, 50% of the net issue is reserved for Qualified Institutional Bidders (QIB), 35% for retail investors and 15% of the net issue is reserved for the Non-Institutional Investors (NII) segment.

The issue proceeds will be utilized in the repayment in full or in part, of certain of the outstanding borrowings, funding to meet working capital requirements and general corporate purposes, according to the company.

Hem Securities Limited is the book running lead manager of the Chetana Education IPO, while Link Intime India Private Ltd is the IPO registrar.

Chetana Education IPO GMP Today

Chetana Education IPO GMP today, or grey market premium today, is ₹11 per share, according to stock market observers. This indicates that Chetana Education shares are trading at ₹96 per share in the grey market, a premium of 12.94% to the issue price of ₹85 per share.

About Chetana Education Ltd

Chetana Education Ltd specializes in publishing textbooks for CBSE/State Board curriculum for K-12 segment and educational software for educational videos for teachers and students accessible through QR (Quick Response) codes.

During FY23, the company has sold more than 6 million books for students at various grade levels, from pre-primary to primary, secondary and senior secondary. The company works with over 400 contract authors who contribute to the creation of content for the company.

Chetana Education reported standalone revenue from operations of ₹93.50 crore, with a net profit of ₹12.03 crore in FY24.

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