IPO Euphoria: S Chand lists higher, comes down minutes later

Share of S Chand and Company listed on premium with 5.52 per cent at Rs 707 in pre-market opening on Tuesday. Soon after, the share price of the company came down from its premium listing and is trading at Rs 678 with gain of 1.19 per cent in an intraday basis. The price band for the offer was set at Rs 660-670 a share.

S Chand and Company’s IPO has witnessed solid investor demand and was oversubscribed 59.49 times. The portion of Qualified Institutional Buyers (QIBs) was oversubscribed by 44.27 times and that of non- institutional investors, a staggering 204.65 times. Retail investors category was also oversubscribed 6.07 times.

JM Financial Institutional Securities, Axis Capital and Credit Suisse Securities (India) Pvt were the merchant bankers to the offer. Last year, the company had acquired 74% of the outstanding share capital of Chhaya Prakashani Pvt.

The company’s offer consists of fresh issue of equity shares aggregating up to Rs 325 crore and an offer for sale of 60,23,236 equity shares amounting to Rs 350 crore. Out of the total offer, 954,907 equity shares are being offered by promoters, 253,593 equity shares by other selling shareholders and up to 48,14,736 equity shares are being offered by Everstone Capital Partners II LLC.