Chetana Education share price makes a positive debut, stock opens with 16.35% premium at ₹98.90 apiece on NSE SME

Chetana Education share price made a positive debut on NSE SME today. Chetana Education share price today opened at ₹98.90, which is 16.35% higher than the issue price of ₹85.

The subscription period for Chetana Education's initial public offering (IPO) commenced on July 24 and finished on Friday, July 26. With a face value of ₹10, each share in the Chetana Education IPO was priced between ₹80 and ₹85. Multiples of the 1600 shares that were put up for bid are also available. Chetana Education IPO subscription status was 196.87 times on the last day of bidding.

Chetana Education IPO comprised 50% of the net issue for QIB, 35% for retail investors and 15% of the net issue for the NII segment.

Chetana Education now provides texts for K–12 courses as well as the Central Board of Secondary Education (CBSE) and the Maharashtra State Board, spanning from early pre-primary school. In FY-23, the firm sold over 6 million books to children in pre-primary, primary, secondary, and senior secondary classes. The company employs more than 400 contract writers who assist with content creation.

The company's listed peers, according to the red herring prospectus (RHP), are Navneet Education Ltd. (P/E of 14.22) and S Chand and Company Ltd. (P/E of 16.50).

Chetana Education Limited had a profit after taxes of ₹12.03 crore and a stand-alone income from operations of ₹93.50 crore in FY-24.

Chetana Education IPO details

The Chetana Education IPO, valued ₹45.90 crore, includes a fresh issuance of 5,400,000 equity shares with a face value of ₹10. There is no "offer for sale" component.

The company's overall goals, working capital needs, and the full or partial payback of some outstanding debts will all be covered by the offer proceeds.

Hem Securities Limited is the book running lead manager and Link Intime India Private Ltd is the registrar for the Chetana Education IPO. The market maker for Chetana Education's IPO is Hem Finlease.

Chetana Education IPO GMP today

Chetana Education IPO GMP is +25. This indicates Chetana Education share price were trading at a premium of ₹25 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Chetana Education share price was indicated at ₹110 apiece, which is 29.41% higher than the IPO price of ₹85.

'Grey market premium' indicates investors' readiness to pay more than the issue price.'

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