India's S Chand files for IPO, Everstone to part exit

According to a filing, Everstone will sell up to 4.8 million shares, representing about half of its 32% stake as of the end of June. The International Finance Corporation (IFC), which holds about a 9% interest, will also exit, selling an unspecified number of shares.

Everstone first invested in the company in 2012, acquiring about a 35% stake for INR2 billion ($29.4 million). It made follow-up commitments in 2014 and 2015. The 2015 round included INR600 million from Everstone and INR1.1 billion from the IFC.

The total offer will include about six million existing equity shares and up to three billion new shares. Proceeds will be used in part to repay debt related to S Chand's acquisition earlier this month of text book publisher Chhaya Prakashani. The company is also expected to pursue further expansion.

"Inorganic growth through acquisitions has been a core strategy for S Chand, and it will continue to evaluate its inorganic acquisitions in regional markets," Deep Mishra, Everstone's representative on the S Chand board, told The Economic Times.

Founded in 1939, S Chand is the oldest and one of the largest publishing and education companies in India, with a national footprint including 50 branches and 60 marketing offices. It publishes 15,000 titles that reach some 20 million student treaders in 40,000 educational institutions.

During the Everstone investment period, S Chand's increased annual revenue from INR1.7 billion in 2012 to INR5.4 billion in 2016. Annual profit during the same period increased from INR146.9 million to INR466.4 million.

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• Topics
• South Asia
• Consumer
• IPO
• India
• Everstone Capital
• IFC
• Education
• Exit