Chetana Education Limited is launching an IPO with a fresh issue of 54,00,000 shares worth INR 45.90 crores. The company aims to repay borrowings, meet working capital needs, and fund general corporate purposes.
Chetana Education IPO – Important Dates
| Chetana Education Limited IPO Date | July 24, 2024 to July 26, 2024 |
| Chetana Education Limited IPO Listing Date | July 31, 2024 |
| Chetana Education Limited IPO Price | INR 80-85 per share |
| Chetana Education Limited IPO Lot Size | 1600 shares |
| Chetana Education Limited IPO Total Issue Size | INR 45.90 crores |
| Chetana Education Limited IPO Basis of Allotment | July 29, 2024 |
| Chetana Education Limited IPO Initiation of Refunds | July 30, 2024 |
| Chetana Education Limited IPO Credit of Shares to Demat | July 30, 2024 |
| Chetana Education Limited IPO Issue Type | Book Built Issue IPO |
| Chetana Education Limited IPO Listing At | NSE SME |
Chetana Education Limited IPO – Company Profile
Chetana Education Limited specializes in K-12 educational book publishing for CBSE/State Boards and provides QR-coded learning videos. With over 700 titles and 6 million books sold in FY 2023, they partner with Allern Enterprises for digital content.
With a network of schools, coaching classes, and booksellers, Chetana partners with over 400 authors and vendors for printing and packaging. It focuses on operational agility and content development while remaining asset-light.
With over 500 distributors and an in-house sales team, it focuses on developing relationships with schools, teachers, and students. Their strategy includes marketing directly to educators, schools, distributors, and dealers for product placement.
Chetana Education Ltd IPO Fundamental Analysis
Chetana Education Limited Technologies’ financial analysis reveals a mixed performance. Revenue has increased significantly, equity and liabilities have grown, profitability and EPS have risen, RoNW improved, assets increased, liquidity strengthened, and inventory turnover decreased.
- Revenue Trend: The revenue increased from ₹4,309.05 lakhs in March 2022 to ₹7,555.71 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 9,350.55 lakhs.
- Equity and Liabilities: Both equity and liability have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹168.06 lakhs in March 2022 to ₹1,203.47 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹1.12 in March 2022 to ₹8.02 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 8.63% to 47.67%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Chetana Education IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 4,309.05 | 7,555.71 | 9,350.55 |
| Equity (₹ in lakhs) | 1,947.33 | 2,281.92 | 2,524.55 |
| Expenses (₹ in lakhs) | 4,025.66 | 6,475.58 | 7,667.76 |
| Profit and Loss After Tax (₹ in lakhs) | 168.06 | 685.47 | 1,203.47 |
| Diluted EPS only (₹) | 1.12 | 4.57 | 8.02 |
| Return on Net Worth (%) | 8.63 | 30.04 | 47.67 |
| NAV per Equity Share (₹) | 12.98 | 15.21 | 16.83 |
| Total Assets (in lakhs) | 7,605.82 | 8,315.08 | 9,475.09 |
| Total Liabilities (in lakhs) | 5,658.49 | 6,033.16 | 6,950.54 |
| Debt Equity Ratio | 1.99 | 1.88 | 2.03 |
| Current Ratio (in times) | 1.48 | 1.52 | 1.53 |
| Inventory Turnover Ratio (In days) | 381 | 226 | 260 |
Chetana Education Limited IPO Peer Comparison
Chetana Education Limited shows strong profitability and return on net worth compared to S Chand and Company Limited and Navneet Education Limited. While Chetana excels in growth, Navneet leads in market capitalization, and S Chand demonstrates solid revenue performance.
| Company | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | Book Value (₹ in lakhs) | Revenue from Operations (₹ in lakhs) |
| Chetana Education Limited | 10 | – | 8.02 | 47.67 | 16.83 | 9,350.55 |
| S Chand and Company Limited | 5 | 16.50 | 14.53 | 5.42 | 268.02 | 66,257.90 |
| Navneet Education Limited | 2 | 14.22 | 11.12 | 19.46 | 57.18 | 1,75,127 |
Chetana Education Ltd IPO Objective
The main objective of Chetana Education Limited is to repay certain borrowings and meet working capital requirements.
- Repayment of specific borrowing availed by the company, in part or full: The company intends to utilize INR 12.17 crores to repay certain borrowings, reduce indebtedness and debt servicing costs, maintain a favorable debt-to-equity ratio, and enhance leverage capacity for future business growth.
- To Meet Working Capital Requirements: The company plans to utilize INR 20 crores from the Net Proceeds to fund working capital needs for trade receivables, inventories, trade payables, and daily operations, with additional funds from internal accruals and borrowings.
- General Corporate Purpose: The company will deploy the balance of funds towards general corporate purposes, including operating expenses, initial project development costs, business development, marketing capabilities, unforeseen contingencies, and other business needs.
Chetana Education IPO Risks And Challenges
Chetana Education Limited’s risk includes seasonal sales fluctuations, reliance on evolving content to meet market demands, and intense competition for authors. Losing key contributors could disrupt content quality, impacting revenue, profitability, and business success.
- The seasonal nature of K-12 book sales, linked to the academic cycle, significantly affects Chetana’s operating revenue, margins, and cash flows. This results in quarterly fluctuations and makes period-on-period comparisons challenging.
- Success depends on providing content that meets evolving exam patterns and customer preferences. Maintaining a robust feedback loop, monitoring trends, and investing in R&D is crucial for customer satisfaction, revenue, and competitiveness.
- Intense competition for authors impacts content quality and business success. Losing key authors or editors could disrupt content development, affecting operations, future revenue, and profitability. Dependence on these individuals poses a significant risk to sales and profitability.
Chetana Education Ltd IPO – Industry & Market Potential
India’s education sector offers growth opportunities, with 26.31% of the population aged 0-14. Government funding has increased, GER targets are set for 2035, and the e-learning market is expanding rapidly.
The new education policy introduces a 5+3+3+4 curriculum structure and biannual board exams. The PARAKH assessment center will standardize evaluations. With 70% government schools and a high PTR in senior secondary, the Samagra Shiksha Scheme continues until 2026.
Franchise models and international collaborations are transforming education. Trends include online learning growth, specialized degrees, and rising enrolments. Government initiatives emphasize vocational training, entrepreneurship, and literacy programs, supporting sector advancement and accessibility.
Chetana Education Limited IPO – Type of Offer
Chetana Education Limited is launching an IPO with a fresh issue of 54,00,000 shares worth INR 45.90 crores. The company aims to repay borrowings, meet working capital needs, and fund general corporate purposes.
Chetana Education IPO Offer Size
The offer size of Chetana Education Limited is INR 45.90 crores, consisting of a fresh issue of 54,00,000 shares. The company seeks funds to repay borrowings, meet working capital needs, and fund general corporate purposes.
Chetana Education Limited IPO Allotment Structure
Chetana Education Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 273,600 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 273,600 shares, are reserved for marker makers.
How to apply for a Chetana Education Limited IPO?
To apply for the Chetana Education Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Chetana Education Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Chetana Education Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Chetana Education Limited’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Chetana Education Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Chetana Education Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Chetana Education Limited IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Chetana Education Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Chetana Education Limited Ltd IPO Offer Registrar
The registrar for the Chetana Education Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
Address: C – 101, 1st Floor, 247 Park,
Lal Bahadur Shastri Marg, Vikhroli (West),
Mumbai – 400083, Maharashtra, India
Telephone: Facsimile: +91 810 811 4949
Email: [email protected]
Website: www.linkintime.co.in
Chetana Education Limited Limited IPO – FAQs
1. What is Chetana Education Limited’s allotment date?
The allotment date of the Chetana Education Limited IPO is July 29, 2024.
2. What is the price band of the Chetana Education Limited IPO?
The price band of the issue is INR 80-85 per share.
3. What is the size of the Chetana Education Limited IPO?
The offer size of Chetana Education Limited is INR 45.90 crores, consisting of a fresh issue of 54,00,000 shares. The company seeks funds to repay borrowings, meet working capital needs, and fund general corporate purposes.
4. What is the listing date of the Chetana Education Limited IPO?
The listing date of Chetana Education Limited’s IPO is July 31, 2024.
