S Chand and Company has received markets regulator Sebi's approval to float an initial public offering (IPO), reported PTI. This includes fresh issue of shares worth Rs 300 crore. Besides, the company's existing shareholders, including private equity fund Everstone and International Finance Corporation (IFC), would be offloading 6,023,236 shares through the Offer for Sale (OFS) route.
The company had filed draft red herring prospectus (DRHP) with Sebi in December last year to float an initial public offer. It received Sebi's 'observation' on March 3, 2017, which is necessary for any firm to launch its public offer, as per the latest update. Proceeds from the issue would be utilised for repayment and prepayment of loans as well as for general corporate purposes.
The loan amount includes those taken by its subsidiary for funding the acquisition of Chhaya Prakashani. The company offers 53 consumer brands across knowledge products and services including S Chand, Vikas, Madhubun, Saraswati, Destination Success and Ignitor.