DACHEPALLI PUBLISHERS LIMITED IPO Explain

Dachepalli Publishers IPO Overview

Hyderabad-based educational publishing house raising ₹39.60-40.39 cr (100% fresh issue, no OFS). Price: ₹100-102. Lot: 1,200 shares (₹2,44,800 min investment for 2,400 shares / 2 lots).

Funds for working capital, business expansion, general corporate purposes (detailed utilization breakdown not yet disclosed).

Lead: Synfinx Capital. Registrar: Bigshare Services.

Founded 1998 (incorporated March 1998), legacy dating back to 1908 bookstall by forefather. K-12 educational content publisher specializing in CBSE, ICSE, and State Board curriculum textbooks. 200+ employees, 75+ contractual authors (as of March 2025).

Products: 616 titles across 6 brands – Apple Book Company, Orange Leaf Publishers, Pelican Publishing House, Sangam Publishing House, School Book Company spanning pre-primary, primary, secondary education. Subjects include English, Hindi, Mathematics, Science, Social Studies, Computer Science, Value Education, Aptitude, Drawing & Colouring, Coding, regional languages (Telugu, Tamil, Kannada, Hindi).

Operates across 10 states and Union Territories. Distribution network of 300+ dealers, in-house sales team of 60 professionals. Sold 4 million+ books in FY25 catering to schools ranging from 100 to 50,000 students. Stronghold in South India – Telangana and Andhra Pradesh contributing 70%+ revenues. Integrated supply chain with centralized warehouse in Hyderabad, 85% in-house printing capacity (75,000 sq. ft. printing plant, 45,000 sq. ft. warehouse). Converts 10 tonnes paper daily = 1 lakh textbooks/day.

Legacy of 117 years (1908 bookstall to 2025), family business now led by third and fourth generations (Vinod Kumar, Rushikesh, Harish, Abhinav Dachepalli).

IPO DETAILED INFORMATION

Issue Details

Parameter	Details
IPO Type	SME (BSE SME)
IPO Open Date	22 December 2025 (Monday)
IPO Close Date	24 December 2025 (Wednesday)
Anchor Investor Bidding	Data not disclosed
Allotment Date	26 December 2025 (Friday) – Expected
Credit to Demat	29 December 2025 (Monday) – Expected
Refund Initiation	29 December 2025 (Monday) – Expected
Listing Date	30 December 2025 (Tuesday) – Tentative
Price Band	₹100 – ₹102 per share
Face Value	₹10 per share
Lot Size	1,200 shares (minimum lot)
Min Investment (Retail)	₹2,44,800 (2,400 shares / 2 lots at upper band ₹102)
sNII Investment	Data not specified
bNII Investment	Data not specified
Issue Size	₹39.60 – 40.39 crore total
Fresh Issue	₹39.60 – 40.39 crore (100%) – 39,60,000 shares
Offer for Sale (OFS)	NIL – No OFS component
Total Shares Offered	39,60,000 equity shares
Listing	BSE SME
Post-Issue Market Cap	~₹140-145 crore (at upper price band ₹102)

Issue Break-up

Category	Allocation
QIB (Qualified Institutional Buyers)	50%
NII (Non-Institutional Investors)	15%
Retail Individual Investors	35%
Market Maker	Portion reserved

Selling Shareholders (OFS ₹0 crore)

No OFS Component – 100% Fresh Issue

Note: This is a 100% fresh issue IPO with no Offer for Sale. All proceeds go directly to the company for business purposes. Promoters are not exiting. Promoter holding details pre/post-IPO not fully disclosed.

Objects of the Issue (Fund Utilization)

Fresh Issue Proceeds (₹39.60-40.39 crore) will be used for:

Detailed fund utilization breakdown not yet disclosed in available public documents. General purposes likely include:

1. Working Capital Requirements
   • Day-to-day operational expenses
   • Inventory management (paper, printing materials)
   • Managing payment cycles with schools and distributors
2. Business Expansion
   • Geographic expansion across 28 states and 8 union territories (currently 10 states)
   • Strengthening distribution network beyond 300+ dealers
   • Increasing sales team size
3. General Corporate Purposes
   • Content development and innovation
   • Technology upgrades for digital content
   • Strategic initiatives

Strategic Focus:

• IPO signaling national expansion ambitions from regional South India stronghold
• Focus on NEP 2020 alignment (foundational literacy, multilingual content)
• Strengthening integrated supply chain and printing infrastructure
• Expansion to Tier 2 and Tier 3 cities

OFS Proceeds:

• NIL – No promoter exit

Note: 100% fresh issue for growth capital. Detailed objects of issue breakdown awaited in final RHP documents.

Lead Managers & Registrar

Book Running Lead Manager (BRLM):

1. Synfinx Capital Private Limited

Registrar:

• Bigshare Services Private Limited
  • Address: S6-2, 6th Floor, Pinnacle Business Park, Mahakali Caves Road, next to Ahura Centre, Andheri East, Mumbai – 400093
  • Phone: +91-22-6263 8200
  • Email: [email protected]
  • Website: www.bigshareonline.com / https://ipo.bigshareonline.com/IPO_Status.html

Market Maker:

• To be appointed

Promoters & Management

Key Promoters (5 Promoters – Dachepalli Family):

Individual Promoters:

1. Mr. Vinod Kumar Dachepalli – Promoter, Chairman & Managing Director
   • Third generation of Dachepalli family
   • Led transition from regional to national publisher
   • Vision for NEP 2020 alignment and pan-India expansion
   • Oversees overall business strategy
2. Mr. Rushikesh Dachepalli – Promoter & Director
   • Third generation, brother of Vinod Kumar
   • Co-manages operations with Vinod
   • Focus on production and quality
3. Mrs. Manjula Dachepalli – Promoter
   • Associated with family business
4. Mr. Harish Kumar Dachepalli – Promoter & Director
   • Fourth generation, son of Vinod Kumar
   • Joined business ~5 years ago (2019-2020)
   • Driving modernization and digital initiatives
5. Mr. Abhinav Dachepalli – Promoter
   • Fourth generation
   • Supporting business operations

Promoter Holding:

• Pre-IPO: Data not fully disclosed
• Post-IPO: Data not fully disclosed

Company History:

• Legacy Established: 1908 (Kistaiah Dachepalli’s bookstall outside Secunderabad railway station – 117 years ago)
• Incorporated: March 3, 1998 (CIN: U22110TG1998PTC028994)
• Operations: 1908-1998 (retail bookstall + early publishing), 1998-present (formal publishing company)
• Legacy: 117 years total (1908-2025); 27 years as incorporated company
• Evolution:
  • 1908: Bookstall by Kistaiah Dachepalli outside Secunderabad railway station
  • Early 1900s: Started publishing Urdu textbooks under Nizam’s Hyderabad dynasty
  • British Raj: Added English medium books
  • 1948: Added Hindi medium after Hyderabad joined India
  • Later: Telugu language books as demand grew
  • 1995 onwards: Launched new brands – School Book Company (30 years ago), Apple Book Company (20 years ago), Orange Leaf Publishers (10 years ago)
  • Recent: Pelican Publishing House (premium brand), Sangam Publishing House
  • 2014: Brought printing in-house (85% capacity); invested in 75,000 sq. ft. printing plant + 45,000 sq. ft. warehouse
• Workforce: 200+ employees, 75+ contractual authors, 60 sales professionals, 70 marketing managers, 450 plant staff, 300+ distributors
• Milestone:
  • Recognized among “Best 5000 MSME Companies in India” (2024)
  • 616 titles across 6 brands serving 10,000+ schools
  • 4 million+ books sold in FY25
  • 85% in-house printing capacity (1 lakh textbooks/day)

Company Contact:

• Registered Office: Plot No. 2/B, (C.F.AREA) I.D.A. Cherlapalli, Phase-II, Hyderabad, Telangana – 500051, India
• Phone: +91-7207020941
• Website: www.dachepalli.com

COMPANY OVERVIEW

Establishment & Background:

• Established: 1908 (legacy bookstall); Incorporated: March 1998 (117 years legacy, 27 years as company)
• Industry: Educational Publishing – K-12 Textbooks
• Headquarters: Hyderabad, Telangana
• Positioning: South India’s leading educational publisher with 117-year legacy; transitioning from regional to national player

Business Model:

Product Portfolio – Educational Publishing:

1. 616 Titles Across 6 Brands:

a. Apple Book Company (established ~20 years ago)

1. Modern brand for contemporary curriculum

b. Orange Leaf Publishers (established ~10 years ago)

1. Recent brand for expanding markets

c. Pelican Publishing House (recent, premium brand)

1. High school books, activity-based learning products
2. Premium positioning

d. Sangam Publishing House

1. Educational content brand

e. School Book Company (established ~30 years ago)

1. Oldest brand among current portfolio

f. Genius Book Company (mentioned historically)

1. Part of diversified publishing portfolio
2. Educational Segments:
   • Pre-Primary: Early learning books
   • Primary: Classes 1-5
   • Secondary: Classes 6-10
3. Subject Coverage:
   • English, Hindi, Mathematics, Science, Social Studies
   • Computer Science, Value Education, Aptitude
   • Drawing & Colouring, Coding
   • Regional Languages: Telugu, Tamil, Kannada, Hindi
4. Curriculum Coverage:
   • CBSE (Central Board of Secondary Education)
   • ICSE (Indian Certificate of Secondary Education)
   • State Boards (Telangana, Andhra Pradesh, others)

Manufacturing & Supply Chain:

Integrated Infrastructure:

• Printing Plant: 75,000 sq. ft. in Hyderabad (established 2014)
  • Offset presses: web and sheetfed
  • Post-press machines
  • Converts 10 tonnes paper daily
  • Production capacity: 1 lakh textbooks/day
  • 85% in-house printing (15% outsourced)
• Warehouse: 45,000 sq. ft. in Hyderabad (close proximity to printing)
  • Centralized distribution
  • Logistics advantage for Tier 2/3 cities
• Total Integrated Facility: 1.5 lakh sq. ft. (printing + warehousing)

Distribution Network:

• 300+ Dealers across India (some relationships 30+ years old)
• 60 In-House Sales Professionals
• 70 Marketing Managers (pan-India, many with 20+ years tenure)
• Regional Sales Offices: Vishakhapatnam, Bangalore, Chennai, Kolkata, Ernakulam, Aurangabad (with independent warehouses)
• 10,000+ Schools served (ranging from 100 to 50,000 students)

Revenue Model:

• Sales of textbooks to schools via distributor network
• B2B model: Publishers → Distributors → Schools
• Curriculum-aligned content ensuring repeat purchases annually
• Multi-brand strategy catering to different price segments and markets

Value Proposition:

• 117-Year Legacy: Trust built over a century (1908-2025)
• 6 Brand Portfolio: Apple, Orange Leaf, Pelican, Sangam, School Book, Genius – catering to varied segments
• Integrated Supply Chain: 85% in-house printing ensuring cost control, timely delivery, quality assurance
• Regional Relevance: Localized content for Telugu, Tamil, Kannada, Hindi markets
• NEP 2020 Alignment: Focus on foundational literacy, multilingual content, curriculum-aligned resources
• Affordable Pricing: “Quality material at affordable price” philosophy
• Strong Distribution: 300+ dealers, 60 sales team, 70 marketing managers ensuring reach
• Family Business Strength: Multi-generational expertise and commitment

Market Position:

• Leading educational publisher in South India (Telangana, Andhra Pradesh stronghold – 70%+ revenues)
• 616 titles across 6 brands
• 4 million+ books sold in FY25
• Operations across 10 states and Union Territories (expanding to all 28 states + 8 UTs)
• 200+ employees, 75+ contractual authors

Operations

Service Delivery:

• Manufacturing Base: Hyderabad (75,000 sq. ft. printing + 45,000 sq. ft. warehouse)
• Geographic Focus:
  • Stronghold: Telangana and Andhra Pradesh (70%+ revenues)
  • Current: 10 states and Union Territories
  • Expansion Target: All 28 states and 8 Union Territories (pan-India)
• Distribution: 300+ dealers, regional sales offices in 6 cities (Vishakhapatnam, Bangalore, Chennai, Kolkata, Ernakulam, Aurangabad)

Company Strengths

1. Exceptional Legacy – 117 Years (1908-2025), Multi-Generational Trust:
   • Founded 1908 by Kistaiah Dachepalli, now led by 3rd and 4th generations
   • Century-old brand trust in education sector
   • Long-term relationships: some distributors for 30+ years, marketing managers for 20+ years
2. Strong Financial Performance – 26% Revenue, 128% PAT Growth (FY24-25):
   • Revenue grew 26% from ₹50.90 cr (FY24) to ₹64.25 cr (FY25)
   • PAT more than doubled – 128% growth from ₹3.32 cr to ₹7.56 cr
   • PAT margin surged from 6.52% to 11.77% – margin expansion of 525 bps
3. Integrated Supply Chain – 85% In-House Printing, Cost Control:
   • 85% in-house printing capacity (1 lakh textbooks/day) ensuring cost control
   • 1.5 lakh sq. ft. integrated facility (75K printing + 45K warehouse) in Hyderabad
   • Timely delivery advantage for Tier 2/3 cities reducing dependence on external printers
4. Diversified Brand Portfolio – 616 Titles, 6 Brands, Multiple Segments:
   • 6 brands (Apple, Orange Leaf, Pelican, Sangam, School Book, Genius) catering to varied price/quality segments
   • 616 titles across CBSE, ICSE, State Boards reducing single-curriculum dependency
   • Multi-lingual: Telugu, Tamil, Kannada, Hindi, English ensuring regional relevance
5. Strong Distribution Network – 300+ Dealers, 10,000+ Schools:
   • 300+ distributor network (some 30+ year relationships)
   • 60 in-house sales team, 70 marketing managers ensuring reach
   • 10,000+ schools served ranging from 100 to 50,000 students
6. NEP 2020 Alignment – Positioned for India’s Education Reform Wave:
   • Focus on foundational literacy, multilingual content aligned with National Education Policy 2020
   • Poised to benefit from government’s education-for-all mission
   • Expansion to all 28 states + 8 UTs capitalizing on NEP implementation nationwide

Key Risks & Challenges

1. Intense Competition – NCERT, S Chand, Navneet, Scholastic, Oxford:
   • Competes with NCERT (government-backed textbooks, highly subsidized)
   • Listed players: S Chand and Company Ltd, Navneet Education, Chetana Education
   • Global giants: Scholastic India, Oxford University Press, Pearson India
2. High Geographic Concentration – 70%+ Revenue from Telangana & Andhra Pradesh:
   • Over 70% revenues from just 2 states (Telangana, Andhra Pradesh)
   • Limited pan-India presence currently (only 10 states operational)
   • Regional regulatory changes, curriculum shifts in AP/Telangana could severely impact
3. Seasonal & Cyclical Business – Academic Year Dependency:
   • Textbook sales concentrated in Q1-Q2 of academic year (March-July)
   • Demand drops significantly post-academic year start
   • Working capital stress during low-demand quarters
4. Curriculum Change Risk – State Board Revisions Impact Inventory:
   • State board curriculum changes render existing inventory obsolete
   • NEP 2020 implementation creating curriculum overhaul requiring massive content rework
   • Unsold old-curriculum books become dead stock
5. Digital Disruption – EdTech Threat to Physical Textbooks:
   • EdTech platforms (BYJU’S, Unacademy, Vedantu) offering digital content
   • Government’s digital education push (DIKSHA platform)
   • Shift to tablets/digital learning in urban schools reducing physical textbook demand
6. Small Scale & Limited Data – ₹64 Cr Revenue, Minimal Public Disclosure:
   • Revenue of ₹64.25 cr (FY25) small compared to listed peers (S Chand ₹500+ cr)
   • Limited financial data available publicly (no ROE, ROCE, detailed ratios disclosed)
   • IPO documents lack clarity on fund utilization objects, promoter holding details

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Disclaimer

This information is based on publicly available sources. Investors should conduct their own research and consult financial advisors before investing.

The company reported strong performance (FY25: 26% revenue growth to ₹64.25 cr, 128% PAT growth to ₹7.56 cr, 11.77% PAT margin) as 117-year legacy educational publisher (1908-2025) with 616 titles across 6 brands serving CBSE/ICSE/State Boards, 300+ distributors, 10,000+ schools, 4 million books sold in FY25, 85% in-house printing (1 lakh textbooks/day), but faces risks including intense competition (NCERT, S Chand, Navneet, Oxford, Scholastic), 70%+ revenue concentration in Telangana-Andhra Pradesh, seasonal academic year dependency, curriculum change risks (NEP 2020 overhaul), digital disruption from EdTech, and small scale (₹64 cr revenue) with limited public disclosures. SME listing on BSE.