In the financial markets, the latest issue that has attracted attention is Chetana Education IPO. The IPO of the current company is interesting for investors as the business has been from long engaged in education sector. In this blog post, let’s take a closer look at the Chetana Education IPO details such as date, financial plans and other factors that are crucial for the investment.
Table of Contents
Chetana Education Overview
Chetana Education Limited was set up in the year 2017 and is engaged in CBSE/ State Board curriculum books for K-12 segment and publishing educational softwares for videos for teachers/ students available through QR code.
Chetana Education, at the moment, offers books for the Maharashtra State Board and the CBSE board and comprises books for the pre-primary stage up to the K-12 segment. The company sells books for students of all levels of education including pre and primary, secondary, and senior secondary. Today the company cooperates with more than 400 contract authors who help the company to generate content.
The company currently has 700 recommended titles till 2023 with 15 different brands that include Master Key, Self-Study, Firefly, Bright Buddies, My Skill Book, Grade Me, QR Series, etc. The company has also come up with other forms of digital content to help students in the understanding of specific subjects and orientation of the content for better learning. The company has a strategic partnership with ed-tech company Allern Enterprises Private Limited and has created over 30,000 videos accessible through QR codes.
By January, 2024 the company will have more than 500 distributors and dealers and sales team at branches and marketing offices all over India.
As of March 31, 2024, the company’s staff was 408 people.
Chetana Education IPO Details
| IPO Date | July 24, 2024 to July 26, 2024 |
| Listing Date | Wednesday, July 31, 2024 |
| Face Value | ₹10 per share |
| Overall Subscription | 196.31x |
| Price Band | ₹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) |
| Listing At | NSE SME |
| Issue Type | Book Built Issue IPO |
| Share holding pre issue | 15,000,000 |
| Share holding post issue | 20,400,000 |
| Market Maker portion | 273,600 shares |
Chetana Education IPO GMP Today
On its opening day of public offer , the Chetana Education IPO saw an overall subscription rate of 2.82 times. However, by the second day, the total subscriptions has surged to 56.47 times. By the end of the offer the overall subscription is 196.31x. Which show an high interest of investors basically retail investors in the IPO. It reflects the expected listing price of the IPO, which will gain 40%–50%. The last updated Grey Market Premium of the Chetana Education IPO is ₹35. The estimated listing price of the Chetana Education IPO is ₹80-₹85 per share. This price combines the cap price and today’s GMP. This table shows the Chetana Education IPO’s GMP trend from the previous days.
The expected listing share price range of the Chetana Education IPO is ₹85-₹130.
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| GMP Date | IPO Price | GMP Price |
| July 29, 2024 | ₹80-₹85 | ₹35 |
| July 28, 2024 | ₹80-₹85 | ₹35 |
| July 27, 2024 | ₹80-₹85 | ₹35 |
| July 26, 2024 | ₹80-₹85 | ₹32 |
| July 25, 2024 | ₹80-₹85 | ₹10-₹15 |
| July 24, 2024 | ₹80-₹85 | ₹40-₹45 |
| July 23, 2024 | ₹80-₹85 | ₹40 |
| July 22, 2024 | ₹80-₹85 | ₹40 |
| July 21, 2024 | ₹80-₹85 | ₹35-₹45 |
Chetana Education IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Chetana Education IPO Timeline (Tentative Schedule)
Chetana Education IPO is available from July 24, 2024, to 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 |
| 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 |
Chetana Education IPO Lot Size
The minimum amount of stock that one investor can buy is 1600 shares, and it must be in multiples of this value. The below table shows the minimum and maximum investment done by retail investor and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 1600 | ₹136,000 |
| Retail (Max) | 1 | 1600 | ₹136,000 |
| HNI (Min) | 2 | 3,200 | ₹272,000 |
Chetana Education IPO Promoter Holding
The promoters of the company are Anil Jayantilal Rambhia, Rakesh Jayantilal Rambhia & Shilpa Anil Rambhia.
| Share Holding Pre Issue | 100.00% |
| Share Holding Post Issue | 73.53% |
Chetana Education Limited Financial Information (Restated Standalone)
The total revenue of Chetana Education Limited has grown by 23. 89% and the profit after tax (PAT) was at 75%.57% for the financial year ending with March 31, 2024 and till 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 |
| Amount in ₹ Lakhs | ||||
Key Performance Indicator
The market capitalization of the Chetana Education IPO is Rs 173. 4 Cr.
KPI as of March 31, 2024.
| KPI | Values |
| ROE | 50.08% |
| ROCE | 26.87% |
| RoNW | 47.67% |
| P/BV | 5.05 |
| PAT Margin (%) | 12.87 |
| Pre IPO | Post IPO | |
| EPS (Rs) | 8.02 | 5.9 |
| P/E (x) | 10.59 | 14.41 |
Note:
- The Pre IPO EPS is calculated on the basis of Pre issue shareholding as on date of RHP and latest fiscal year earning ending on March 31, 2024 as considered in RHP.
- The Post Issue EPS would be calculated by employing the Post issue shareholding and annualized FY earnings of March 31, 2024 as given in RHP.
Objects of the Issue (Chetana Education IPO Objectives)
The company intends to utilize the proceeds of the Issue to meet the following objects:
1. A borrowers’ indebtedness cleared in part or in full just accrued to the Company.
2. For fulfilling Working Capital needs.
3. General Corporate Purpose.
Chetana Education IPO Review (For apply)
The competition within the segment is high and the segment is generally fragmented. It recorded an increase in its both the income and expense lines for the stated periods. Relative to estimated integrated FY24 super earnings, the issue is significantly overpriced. Sophisticated investors may place moderate amounts of capital for the medium to long term.
Growth Prospects
The growth in the education sector is relatively high due to enhanced demand of quality education coupled with the availability and development of online classes. Chetana Education is well placed to benefit from these trends given the company’s well-established brand and full-service offerings. Future growth and improvement to shareholder wealth is anticipated as the company executes its growth strategies and other key initiatives.
Investment Rationale
- Strong Market Demand
Education sector is still one of the most stable and rapidly growing segments. By meeting quality needs and embracing innovation, Chetana Education will likely benefit from the increasing market demand for educational service providers. Based purely on the reputation and position of the company it is a strong candidate for the investment.
- Financial Stability
Chetana Education has maintained good financial performance hence revealing that the company can provide value to shareholders. The revenue of the company and the achieved profitability allow for future business development and further success.
- Strategic Expansion
The strategies to expand and diversify Chetana Education will also help in its growth in the future. Thus, developing new sources and using the existing ones, the managerial team tries to strengthen its position on the market and provide added values for shareholders.
Risks and Considerations
While the Chetana Education IPO presents a promising investment opportunity, it’s essential to consider potential risks:
• Market Volatility: The IPO has elements related to stock market which means that there can be fluctuations in the company’s performance.
• Sector Risks: Laws regulating the sector in which the education is provided may change or the market conditions may present conditions that may slow the company’s growth.
• Company-Specific Risks: Evaluate any shortcomings in the firm’s management, operations and strategies that can give an idea of its exposure level.
Chetana Education Limited Contact Details
Chetana Education Limited
401, E-Wing, B & C Block,
Trade Link, Kamala Mill, Delisle Road,
Mumbai, Mumbai City – 400013
Phone: +91-22-6245 6000
Email: [email protected]
Website: http://www.chetanaeducation.com/
Conclusion
The Chetana Education IPO therefore offers an attractive proposition for those seeking to invest in the education industry. There are good possibilities of the IPO being handy for your investment portfolio because it has an excellent financial record, rationalization of the IPO proceeds, and the upbeat market stories. But, it is better to consider and analyze the potential dangers and, thus, consult with the help of professional financial advisors in case with certain types of investments.
To know more Chetana Education IPO, and get the regular updates, visit The Invest Advisory.