Chetana Education IPO Fully Subscribed on Day 1 Amid Strong QIB & Retail Demand – Check GMP & Subscription Status!
The Chetana Education IPO opened for subscription on July 24 and will close on July 26. The price for each share is set between ₹80 and ₹85, with a face value of ₹10. Investors can bid for at least 1,600 shares, and multiples of that.
Allocation
The IPO is divided into 50% for Qualified Institutional Buyers (QIB), 35% for retail investors, and 15% for Non-Institutional Investors (NII).
Retail investors need to invest at least ₹1.36 lakh, while High Net-worth Individuals (HNIs) can bid for at least two lots (3,200 shares) for a minimum of ₹2.72 lakh.
Brief about Chetana Education
Chetana Education provides textbooks for students from pre-primary to K-12, serving both the CBSE and the Maharashtra State Board. In FY-23, the company sold over 6 million books and employed more than 400 contract writers for content creation.
According to the red herring prospectus (RHP), the company’s listed peers are S Chand and Company Ltd (P/E of 16.50) and Navneet Education Ltd (P/E of 14.22).
In FY-24, Chetana Education reported a standalone revenue of ₹93.50 crore and a profit after tax of ₹12.03 crore.
Chetana Education IPO Subscription Status
On the first day, the Chetana Education IPO was subscribed 1.93 times. The retail portion was subscribed 1.61 times, the NII portion 1.16 times, and the QIB portion 3.05 times. The company received bids for 69,18,400 shares against 35,90,400 shares on offer as of 3:28 PM IST.
The IPO aims to raise ₹45.90 crore through the fresh issuance of 5,400,000 equity shares. The proceeds will be used for general corporate purposes, working capital, and repaying existing borrowings.
Link Intime India Private Ltd is the registrar, Hem Securities Limited is the book running lead manager, and Hem Finlease is the market maker for the IPO.
Chetana Education IPO GMP Today
The grey market premium (GMP) for Chetana Education IPO is ₹23, suggesting that the shares are trading at a premium of ₹23 in the grey market. This implies an estimated listing price of ₹108 per share, 27.06% higher than the IPO price of ₹85.
The GMP reflects investors’ willingness to pay more than the issue price.
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