Chetana Education Ltd IPO

Focused digital and technology platform.

Consumer focused education content player.

Healthy position in the K-12 market.

Established network for content development and printing.

Widespread sales and distribution network.

Experienced management and leadership team.

The contents of the books the company publish and the authors who drafts these content are very significant for its business. The loss of all or any of its authors could adversely affect its business, results of operation, cash flows and financial condition.

The company generates its major portion of revenue from Maharashtra Board and CBSE and any adverse developments affecting its operations with them could have an adverse impact on its revenue and results of operations.

Its business and results of operations may be adversely affected by factors such as general economic conditions, changes in the educational policies of the government and changes to the syllabus and curriculum standard.

Its promoters and directors are involved in certain legal proceedings.

The company has had negative net cash flows in the past and may continue to have negative cash flows in the future.

Any rise in costs or a deficiency in the availability of the raw materials the company procure could impact on the companys sales, profitability, and operational results in an adverse manner.

Its results of operations and cash flows could be adversely affected, if the company is unable to collect its dues and receivables from its customers in a timely manner.

The company operates in markets which are dependent on IT systems and technological change. If the company is unable to keep its systems and technologies updated, it will adversely affect its business conditions.

Its business is intricately tied to the academic cycle, making it somewhat cyclical in nature. As a result, its revenue and profitability may not be comparable from one period to another.

Its product is subject to changing examination paper pattern and syllabus, and customer preferences, its inability to meet such needs or preferences may affect the companys business.