The company's IPO had seen strong investor interest, which had been subscribed 59.28 times; it had raised Rs 219 crore from anchor investors.
Shares of S Chand & Co listed at Rs 689 on Tuesday, a 3 percent gain on the issue price of Rs 670.
However, the stock soon lost steam as it was trading at a discount within the first hour of its trade.
The listing was tepid as compared to the demand it had seen from investors. It was oversubscribed 59.28 times, and had raised Rs 219 crore from anchor investors.
The management expects a few segments to witness steady performance. The K-12 segment is likely to sustain, while the test prep segment will grow further for the company, its management told CNBC-TV18 in an interview.
Going forward, the company expects 200 basis points improvement in EBITDA margin in the future and sees CAGR growth of 18-20 percent.
The company aims to reduce its debt by 75 percent from the IPO proceeds.
Meanwhile, the company also sees some opportunities in the unorganized space for acquisistions.
Speaking on the disruptions due to digital developments, Himanshu Gupta, MD, S Chand said, “We rather see digital as an enabler. In 2-3 years, all books will have digital or web support.”
The price band for the offer was set at Rs 660-670 a share. 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 textbook publisher’s issue received bids for 45,56,00,794 shares against the total issue size of 76,85,284 shares, data available with the NSE showed.At 10:18 hrs S Chand and Company Limited was quoting at Rs 674.90, up Rs 4.90, or 0.73 percent.