The education sector in India is witnessing a boom and Chetana Education, a textbook publisher and ed-tech provider, is set to capitalise on this growth with its upcoming IPO. This blog dives into the details of the Chetana Education IPO, helping you decide if it's the right IPO investment for you.
About Chetana Education
- Established in 2017, Chetana Education focuses on publishing textbooks for K-12 students (Maharashtra State Board and CBSE curriculum) and educational videos accessible through QR codes.
- The company boasts a vast portfolio of over 700 titles and established partnerships with over 400 authors for content creation.
- Chetana Education has shown steady revenue growth and a significant increase in profit after tax in the last financial year.
Chetana Education IPO fundamentals
- Issue Size: ₹45.90 crore (fresh issue only)
- Price Band: ₹80 - ₹85 per share
- Minimum Lot Size: 1600 Shares (₹136,000 minimum investment)
- Listing: NSE SME (tentative date: July 31, 2024)
Chetana Education financials
- Revenue: Increased by 23.89% compared to FY23
- Profit After Tax (PAT): Increased by 75.57% compared to FY23
- Market Capitalization: ₹173.4 Cr
Key considerations for the Chetana Education IPO
- SME Listing: Chetana Education is listing on the NSE SME platform, which caters to smaller companies with typically lower liquidity than the main NSE board.
- Growth Potential: The Indian education sector is expected to witness significant growth due to factors like rising disposable income and increasing enrollment rates. Chetana Education's focus on K-12 education and its digital initiatives position it to benefit from this trend.
- Content and Partnerships: The company's vast content portfolio and established author network are strengths. The strategic partnership with Allern Enterprises for educational videos adds another dimension to their offerings.
Who should consider the Chetana Education IPO?
- Investors with a Long-Term Horizon: Given the SME listing, liquidity might be lower. This investment is suitable for those with a long-term perspective on the education sector's growth.
- Thematic Investors: Those interested in investing in the Indian education sector might find this IPO appealing.
- Investors Comfortable with Mid-Cap Risk: SME IPOs generally involve higher risks than established companies. Investors comfortable with such risk can consider this opportunity.
Further research
- Read the company's DRHP (Draft Red Herring Prospectus) for a detailed understanding of its business model, financials, risk factors, and future growth strategies.
- Look for analyst reports and news articles to gain insights into the competitive landscape of the Indian K-12 education sector and the ed-tech market.
Conclusion
Chetana Education's IPO offers an opportunity to invest in a growing company within the promising Indian education sector. However, the SME listing platform and inherent risks in the publishing and ed-tech industries necessitate careful consideration. Thorough research, a long-term investment approach, and an understanding of the company's competitive landscape are crucial before subscribing to this IPO.
Disclaimer: This blog is for informational purposes only and should not be considered financial advice. Investing in the stock market carries inherent risks, and it's essential to conduct thorough research or consult with a qualified financial advisor before making any investment decisions.
