S Chand debuts at 5% premium; shares drop soon after listing
Indian education content company, S Chand & Company Ltd on Tuesday made its debut on stock exchanges. The company listed at Rs 707 per piece, or at a premium of 5.5% as against issue price of Rs 670 per piece.
However, soon after the listing the shares of the company dropped. At 1036 hours the shares of the company were trading at Rs 670.45 per piece, up 0.07% or Rs 0.45 from its issue price. But, the shares were down by 5.17% or Rs 36.55 from its listing price.
The company's IPO, which ended on April 28, saw a robust demand from retail investors. On the last day, the IPO had received bids for 45,56,00,794 shares against the total issue size of 76,85,284 shares.
The IPO comprised of fresh issue of shares up to Rs 325 crore. The company was looking to repay debt of Rs 2.56 billion from the IPO proceeds and further working towards integration of Chhaya Prakashani in FY18E. Last year, the company had acquired 74 per cent of the outstanding share capital of Chhaya Prakashani Pvt.
JM Financial Institutional Securities, Axis Capital and Credit Suisse Securities (India) Pvt were the merchant bankers to the offer.