Dachepalli Publishers Limited Makes Weak Debut with 20.00% Decline, Lists at ₹81.60 Against Modest Subscription Dachepalli Publishers Limited, engaged in publishing industry focusing on educational content including textbooks, reference books, and academi

Dachepalli Publishers Limited, engaged in publishing industry focusing on educational content including textbooks, reference books, and academic materials catering to school and college-level curricula across CBSE, ICSE, and State Board delivering high-quality, affordable, curriculum-aligned educational materials with portfolio of over 600 titles under six prominent brands including Apple Book, Orange Leaf Publishers, Pelican Publishing House, Sangam Publishing House, and School Book Company operating across 10 states and union territories with distribution network of 300 distributors and dealers having sold over 4 million books in fiscal 2025, made a weak debut on BSE SME on December 30, 2025. After closing its IPO bidding between December 22-24, 2025, the company commenced trading with a severe decline of 20.00% opening at ₹81.60 and touched ₹77.55 (down 23.97% hitting lower circuit).

Dachepalli Publishers Limited Listing Detail

Dachepalli Publishers launched its IPO at ₹102 per share with minimum investment of 2,400 shares costing ₹2,44,800. The IPO received modest response with subscription of 1.97 times - individual investors at 1.90 times, QIB at 1.29 times, NII at 3.04 times.

First-Day Trading Performance

Listing Price: Dachepalli Publishers opened at ₹81.60 representing severe decline of 20.00% from issue price of ₹102.00, touched high of ₹85.65 (down 16.03%) and low of ₹77.55 (down 23.97% hitting lower circuit), with VWAP at ₹81.42.

Growth Drivers and Challenges

Growth Drivers:

Strong Growth Trajectory: Revenue increased 26% and PAT surged 128% between FY24 and FY25, exceptional ROE of 32.12%, ROCE of 18.22%, RoNW of 27.68%, healthy PAT margin of 11.83%, strong EBITDA margin of 19.53%.

Market Position: Legacy of trust with longstanding industry presence, strong market position in K-12 education segment, portfolio of 600+ titles across six prominent brands, extensive sales and distribution network with 300 distributors and dealers across 10 states.

Challenges:

Severe Market Rejection: Opening decline of 20.00% followed by lower circuit hit at 23.97% down creating massive investor losses, demonstrating complete market rejection despite analyst stating issue appears fully priced and recommending for medium to long term.

Financial Concerns: High debt levels with borrowings of ₹44.11 crore, ₹6.00 crore of IPO proceeds for debt repayment, operating in highly competitive educational publishing segment.

Operational Risks: Significant promoter dilution from 88.07% to 64.78%, south-centric publisher with operations limited to 10 states aiming for pan-India expansion creating execution risks, vulnerable to changes in educational policies, curriculum revisions, and digital disruption in publishing industry, seasonal nature of textbook business tied to academic calendar.

Utilisation of IPO Proceeds

Working Capital: ₹25.00 crore for part financing requirement of working capital supporting publishing operations and inventory management.

Debt Repayment: ₹6.00 crore for repayment of certain borrowings in part or full strengthening balance sheet.
General Corporate Purposes: ₹6.00 crore for meeting general corporate purposes supporting operational needs.

Financial Performance

Revenue: ₹64.25 crore for FY25, growth of 26% from ₹50.90 crore in FY24, reflecting expanding educational publishing operations across 600+ titles and growing distribution network.

Net Profit: ₹7.56 crore in FY25, growth of 128% from ₹3.32 crore in FY24, demonstrating operational leverage and improving margins.

Financial Metrics: ROE of 32.12%, ROCE of 18.22%, RoNW of 27.68%, PAT margin of 11.83%, EBITDA margin of 19.53%, post-issue EPS of ₹10.17, P/E of 10.03x, borrowings of ₹44.11 crore, and market capitalisation of ₹117.79 crore representing severe listing decline with 20% opening loss followed by lower circuit creating 23.97% maximum losses.