Schedule of Chetana Education
| Issue open date | 24 Jul 2024 |
| Issue close date | 26 Jul 2024 |
| UPI mandate deadline | 26 Jul 2024 (5 PM) |
| Allotment finalization | 29 Jul 2024 |
| Refund initiation | 30 Jul 2024 |
| Share credit | 30 Jul 2024 |
| Listing date | 31 Jul 2024 |
| Mandate end date | 12 Aug 2024 |
| Lock-in end date for anchor investors (50%) | 28 Aug 2024 |
| Lock-in end date for anchor investors (remaining) | 28 Oct 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Chetana Education
Chetana Education Limited’s IPO launches on July 24, 2024, with subscriptions closing on July 26, 2024. Founded in 2017, the company publishes educational books for the K-12 segment and offers educational software with QR code access for interactive learning. The company’s operations include pre-primary to K12 courses for the Maharashtra State Board and Central Board of Secondary Education (CBSE). It has a portfolio of over 700 titles and 15 brands, such as Master Key, Self-Study, and Bright Buddies. In the fiscal year 2023, the company sold over 6 million books.
Over 400 contractual authors collaborate with Allern Enterprises Private Limited, an ed-tech company, producing over 30,000 educational videos accessible through QR codes. With a distribution network spanning 18 states and Union Territories, they operate a central warehouse in Bhiwandi, Mumbai, and additional facilities in Delhi and Karnataka.
Financials of Chetana Education
Issue size
| Funds raised in the IPO | Amount |
| Overall | ₹45.90 crores |
| Fresh issue | ₹45.90 crores |
| Offer for sale | – |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Repayment of certain borrowings | 12.17 (26.51%) |
| Working Capital requirements | 20 (43.57%) |
| General corporate purpose | 13.73 (29.91%) |
*All figures except EPS are in ₹ crores
Strengths
- Focused Digital and Technology Platform: The company leverages a robust digital and technology platform to deliver educational content efficiently, ensuring a seamless user experience.
- Consumer-Focused Education Content Player: Emphasis on quality and relevant content tailored to the needs of students, particularly in the K-12 segment.
- Healthy Position in the K-12 Market: The company has built a significant presence in the K-12 educational sector, backed by strong relationships with schools and educational institutions. This established network supports consistent demand for its services and products, providing a stable foundation for growth.
- Experienced Management and Leadership Team: Led by seasoned professionals with extensive experience in the education industry, the management team provides strategic direction and operational expertise, driving the company’s growth and stability.
Risks
- Cyclical Nature of Business: Revenue and profitability are tied to the academic cycle, making them seasonal and not comparable from one period to another.
- Changing Examination Patterns and Syllabus: The products must adapt to evolving exam patterns and syllabuses. Failure to meet these evolving needs may have an impact on revenue and customer satisfaction.
- Dependence on Authors and Editors: The business relies heavily on its authors and editors. Losing key authors could adversely affect content quality and business operations.
- Competitive and Fragmented Industry: The company operates in a highly competitive market with numerous education boards and content providers, resulting in intense pricing and quality competition.
- Unsecured loans: The company’s unsecured loans worth ₹13.06 crores can be recalled by lenders at any time, potentially impacting financial stability and operations.
Note:
- The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
- The allotment status will be available by July 30, 2024, on the registrar’s website and the NSE website.