Chetana Education shares list at 16% premium at ₹98.9 apiece on NSE SME

Chetana Education Ltd shares listed at a 16% premium over the issue price on the NSE SME platform, Emerge, on Wednesday.

Starting the trade on a positive note, the company's shares listed at ₹98.9 apiece against the issue price of ₹85 per share, reflecting gains of 16%.

More than 12.69 lakh shares of the company changed hands on the NSE within 15 minutes of listing, with the total traded value amounting to ₹12.48 crore. The market value of the company stood at ₹191.66 crore.

At 10.15 am, the company's shares were trading at ₹93.95 per share, down 5% from the listing price but up 10% from the issue price.

Educational content publisher Chetana Education launched its IPO on July 24 to raise ₹45.90 crore from public investors. The issue, which comprised a fresh issue of 54 lakh shares, closed for subscription on July 26. Chetana Education had fixed the IPO price at ₹80-85 per share. The minimum lot size was 1,600 shares, and the minimum amount of investment required was ₹136,000 for retail investors.

At the close of bidding on July 26, the Chetana Education IPO was booked nearly 197 times. Total bids for 70.68 crore shares worth up to ₹6,008.28 crore were received against 35.90 lakh shares on offer.

The qualified Institutional Buyers’ portion was booked 101 times. The non-Institutional Investors (NIIs) portion was booked 468 times. Retail Individual Investors’ quota received 135 times subscription.

Earlier, the company raised ₹13.06 crore from anchor investors. Nine fund schemes were allotted 15.36 lakh shares at a price of ₹85 per share. Finavenue Capital Trust, Negen Undiscovered Value Fund, Visionary Value Fund, and Benani Capital are among the fund schemes that cornered shares in the anchor investor round.

Chetana Education is a content-based company. It specialises in educational book publishing for the CBSE and State Board curriculum catering to the K-12 segment. The company also offers educational software for learning videos for students and teachers.

The company has proposed using IPO proceeds for debt repayment, meeting working capital requirements, and other general corporate purposes.

According to the RHP, Chetana Education would utilise ₹12.17 crore for the repayment or pre-payment of certain borrowing. The company’s total outstanding fund-based borrowings are ₹51.28 crore.

It has proposed to use ₹20 crore to meet working capital requirements.