Addictive Learning Technology (Lawsikho) IPO: Valuation, GMP

Addictive Learning Technology Limited IPO - Complete Overview

Founded in September 2017, Addictive Learning is an education platform helping people boost their skills and careers. They focus on professionals, both experienced and young, offering courses in Law, Finance, Compliance, HR, Business Consulting, AI, Content Writing, and Data Science through brands like LawSikho and Skill Arbitrage.

Their courses, accredited by the National Skill Development Corporation, cover various skills to help individuals progress in their careers. They also provide international bar exam courses for Canada, the UK, and California.

As of October 2023, they have 145 full-time staff and 444 professionals. Their goal is to make professional upskilling accessible, providing opportunities for both local and global freelance work and remote jobs.

 

Addictive Learning Technology Limited IPO Overview

Lawsikho IPO date is slated to be open for subscription from January 19, 2024, to January 23, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Lawsikho IPO price is fixed at Rs.130 - Rs.140 per share. 

The total issue size of this IPO amounts to Rs.60.16CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. 

 

 

Lawsikho IPO Timetable (Tentative)

Events	Date
IPO Opening Date	19 January 2024
IPO Closing Date	24 January 2024
IPO Allotment Date	25 January 2024
Refund initiation	29 January 2024
IPO Listing Date	30 January 2024

 

Lawsikho IPO Details

IPO Opening & Closing Date	19 January to 24 January 2024
Face Value	Rs. 10 per share
Issue Price	Rs. 130 - Rs. 140  per share
Lot Size	1000  Shares
Price of 1 Lot	Rs. 1,40,000
Total Issue Size	4,297,000 Shares (aggregating up to Rs 60.16 Cr)
Offer for Sale	160,000 Shares of Rs.10 (aggregating up to Rs.2.24 Cr)
Fresh issue	4,137,000 Shares (aggregating up to Rs.57.92 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Maashitla Securities Private Limited

 

Detailed Video

 

Lawsikho IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	1000
Maximum Lot Investment (Retail)	1 lot	1000
Minimum Lot Investment (HNI)	2 lot	2000

 

Lawsikho IPO Reservation

QIB Shares Offered	Maximum 50%
Retail Shares Offered	Minimum 35%
Other Shares Offered	Minimum 15%

 

Company Financial

The company reflects positive growth in financials, with no outstanding borrowings.

(Amount in Lakhs)

Period	Aug 31, FY 23	Mar 31, FY 23	Mar 31, FY 22
Total Assets	1,324.95	920.64	103.11
Total Revenue	2,482.36	3,354.47	1,859.34
PAT	315.96	247.13	-49.07
Net worth	522.27	206.30	-40.82
Reserve & Surplus	512.17	196.20	-50.92
Total Borrowings	-	15.73	-

 

Segment- Wise Revenue Breakup

The revenue breakdown emphasises Advertisement & Publicity, featuring fluctuating Digital Marketing Expenses.

(in %age)

Particulars	Aug 31, FY 23	Mar 31, FY 23	Mar 31, FY 22
Advertisement & Publicity Exp	85.00%	92.00%	100.00%
Digital Marketing Exp	15.00%	8.00%	0
TOTAL	100.00%	100.00%	100.00%

 

Revenue by Operations

Addictive Learning's revenue from operations showed growth on Aug 31 and Mar 31, FY 23, with additional operating income reported on Mar 31, FY 23.     

(Amount in Lakhs)

Particulars	Aug 31, FY 23	Mar 31, FY 23	Mar 31, FY 22
Revenue from operations	2482.36	3353.43	1857.29
Other Operating Income	-	1.04	2.05
Total Revenue from operations	2482.36	3354.47	1859.34

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Expenses for Unidentified Acquisition (In India or Abroad).
• Expenses for Identified Acquisition.
• Investment in Technology.
• Development of new courses.
• Branding & Marketing Expenses for the Company
• Working Capital requirements of the Company.
• General Corporate Purposes.
• Issue Expenses.

 

Promoters and Management of Lawsikho IPO

1. Mr Ramanuj Mukherjee.
2. Mr Abhyudaya Sunil Agarwal.

Pre-issue Promoter shareholding	92.27%
Post-issue Promoter shareholding	67.27%

 

Lawsikho IPO Lead Managers

• Narnolia Financial Services Ltd.

 

Peers of Lawsikho IPO

The company has a higher P/E ratio than CL Educate Limited and Career Point Limited. 

Name of the Company	Face Value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
Addictive Learning Technology Limited	10	28.35	4.94
CL Educate Limited	10	32.56	2.41
Career Point Limited	10	15.41	12.20

 

Evaluation

The IPO is priced within the range of Rs.130 - Rs.140  per share.

P/E Ratio evaluation:

- Based on the FY23 EPS of Rs 4.94, the resulting P/E ratio stands at 28.35x.
- Considering the weighted EPS of Rs 2.14 over the last three years, the corresponding P/E ratio is 66.69x.

Comparison with Industry Peers:
- The highest P/E ratio among listed peers is 311.86x, while the lowest is 15.41x.
- The industry's average P/E ratio is 106.93x.

As a result, the IPO Price range corresponds to a P/E ratio ranging from 28.35x to 66.69x. In comparison to the industry average of 106.93x, this suggests that the IPO is potentially undervalued.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO Strengths

• Integration of industry experts as teachers enhances education quality, linking theory with practical knowledge.
• Operating remotely across India widens access to a diverse talent pool and creates job opportunities in Tier-2 and Tier-3 cities, contributing to economic development.

 

IPO Weaknesses

• Ensuring a consistent pool of employable individuals on a month-on-month basis may be challenging as the organisation scales up.
• Effective remote operations rely on robust technological infrastructure and connectivity, which may not be uniformly available in all areas of the country.

 

 

IPO GMP Today

The Latest GMP of Lawsikho IPO is Rs. 175.

 

Conclusion

The Addictive Learning Technology Limited IPO, focusing on professional upskilling, presents an appealing investment opportunity. Opening from January 19 to January 23, 2023, at Rs.130 - Rs.140 per share, the IPO exhibits positive financial growth, a sound objective, and a reasonable valuation. Strengths lie in expert-led courses and remote operations, but challenges include scaling employability consistency.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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