Chetana Education Limited specializes in publishing textbooks for CBSE/State Board curriculum for the K-12 segment and educational software for educational videos for teachers and students. Chetana Education IPO aims to raise Rs 45.90 crores. The issue is entirely a fresh issue of 54 lakh shares.

About Chetana Education :

• They are a content-based company, specializing in educational book publishing for the CBSE/State Board curriculum catering to the K-12 segment.
• Additionally, they provide access to educational software for learning videos (for teachers and Students) accessible through QR (Quick Response) codes, backed by a comprehensive sales and distribution network.
• Currently focus on serving the Maharashtra State Board and Central Board of Secondary Education (CBSE), covering the spectrum of education books from early pre-primary learning to K-12 course.
• During the Fiscal year 2023, they sold over 6 million books, covering students across different standards ranging from pre-primary, primary, secondary, and higher secondary levels.

Financials: Chetana Education IPO

Anchors: Chetana Education IPO

Chetana Education IPO: Salient Points

• They are offering students a mix of interactive learning experiences and additional comprehensive practice. In the pre-primary section,their focus on technological advancement is highlighted through the introduction of apps, specially curated to facilitate play-based learning, digital videos, and supplementary resources.
• For the secondary and higher secondary sections, they have been using QR codes with self-learning videos, providing students with a dual model of learning..
• Net proceeds use:

• Strategic partnership with Allern Enterprises and Edtech Company to develop digital content
• Peers

• It is priced at par with peers
• Has a widespread sales and distribution network which spans across 18 states and union territories, consisting of over 500 distributors and dealers.
• From Fiscal 2022 to Fiscal 2023, their K-12 operating revenue grew at a CAGR of 75.35%.
• They have established presence in the State Board of Maharashtra and CBSE affiliated schools. They intend to entering and expanding presence in various other state boards like Tamil Nadu and Gujarat.
• Chetana Education IPO is coming at a PE ratio of 14.4.7x (FY24 Earnings).
• I intend to apply in Chetana Education IPO subject to availability of funds. Company has some promise though it is placed at par with larger peers. Given the nature of business listing gains may not be very high.
• GMP as reported on social media has been Rs. 40 (48%)
• The lead manager Hem securities has a good track record.
• SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
• This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.