Dachepalli Publishers Limited: IPO announced to reinvent K-12 educational publishing and digital learning ecosystem

Dachepalli Publishers Limited, a Hyderabad-based K-12 education publishing company with a history of more than 100 years in the industry, has declared an initial public offer (IPO), comprising the fresh issuance of 39,60,000 equity shares of the face value of Rs 10 each. Anchor investors will open the offer on Friday, December 19. The issue will open for the general public on Monday, December 22, and close on Wednesday, December 24. It is proposed that the equity shares be listed on the BSE SME platform and tentatively listed on December 30.

Issue structure and details

• Issue Type: Book built issue
• Price Band: Rs 100-102 per equity share
• Lot Size: 1,200 equity shares, and times that number.
• Book Running Lead Manager: Synfinx Capital Private Limited
• Solicitor to the Issue: Bigshare Services Private Limited
• Market Maker: JSK Securities and Services Private Limited

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IPO allotment, investor reservation, other key things to know

The aggregate number of shares of equity amount is 39, 60,000, offered as follows:

• Maximum 50 per cent for qualified institutional buyers (QIBs)
• Minimum 15 per cent for retail individual investors
• Not less than 35 per cent for non-institutional investors
• Anchor Investors may be permitted to own as much as 60% of the QIB portion.

The foundation of allotment is likely to be completed on December 26, and the shares are likely to be credited to investors' demat accounts in the near future.

Utilisation of Net Proceeds

It is proposed to use the net proceeds of the issue with the following objects:

• 1. Repayment/prepayment of all/particular of our borrowings: Up to Rs 6 crore
• 2. Finance of working capital needs: Maximum Rs 25 crore
• 3. General corporate purposes

Business Overview

Dachepalli Publishers Limited is a K-12 educational publishing company based in Hyderabad. Founded in 1908 and incorporated in 1998, the company today is involved in the invention and publication of curriculum-compatible textbooks, work books and additional academic resources in pre-primary, primary and secondary education. The company offers more than 600 titles to meet CBSE and ICSE as well as state board curricula for customers based on the size of the school (100 to more than 50,000 students) to meet the requirements of NEP 2020 and NCF.

The company has a centralised publishing and in-house printing facility of 75,000 sq. ft. and an owned warehouse of 30,000 sq. ft. which allows it to control printing, storage and distribution nationwide with about 85 percent of printing in-house. It has built an impressive presence in 10 states and UTs with more than 300 distributors, with a good presence in South India with an extension to India.

Key Strengths

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• Inclusive K-12 Focus: Specialised attention to school education helps with the deepening and uniformity of the curriculum
• Internal printing capabilities: The high level of in-house printing helps to control the quality and price
• Wide Distribution Network: Presence in multiple states with a high number of distributors
• Successful Promoter-Led Management: Leadership that is in-depth about the industry and able to carry out

Disclaimer: Dachepalli Publishers Limited is seeking approval, subject to acquiring proper approvals and market conditions, to issue an initial public offering of its equity shares and has submitted a Red Herring Prospectus (RHP) dated December 13 to the Registrar of Companies, West Bengal. It can be found on the websites of SEBI (www.sebi.gov.in), BSE SME (www.bseindia.com), Bigshare Services Private Limited (www.bigshareonline.com) and Dachepalli Publishers Limited (www.dachepalli.com). The investor has to read the RHP thoroughly, including the section on the risk factors, before putting in their capital.

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