Lawsikho IPO Listing: Stock Lists at 121% Premium on NSE SME
Lawsikho IPO Listing
LawSikho IPO Listing: A Triumph in the EdTech Sector
Addictive Learning Technology’s (ALT) flagship product, LawSikho, marked a significant milestone with its Initial Public Offering (IPO) of Rs 60.16 crore.
The IPO, open for subscription from January 19 to 24, emerged as a resounding success, capturing the attention and interest of investors.
LawSikho, an edtech platform under ALT, offers upskilling and career services, catering to senior and mid-career professionals in diverse domains such as law, finance, compliance, human resources, business consulting, AI, content writing, and data science.
The IPO’s robust performance reflects the growing demand for innovative educational solutions and the potential for disruption within the edtech landscape.
Impressive Subscription Figures
The LawSikho IPO witnessed an overwhelming response from the investing community, boasting an overall subscription rate of more than 273 times.
This extraordinary demand across investor categories underscored the confidence and optimism surrounding ALT’s prospects.
Qualified institutional investors subscribed 116.27 times, non-institutional investors an astonishing 414.44 times, and retail investors an impressive 301.71 times.
Such subscription figures not only highlight the credibility of LawSikho but also signify the evolving investor appetite for disruptive and scalable edtech ventures.
Listing Performance and Investor Gains
The IPO offered shares at a price of Rs 140, and upon listing on the NSE SME, the stock surged to Rs 310, delivering a substantial listing gain of more than 121 percent for IPO investors.
The initial enthusiasm propelled the stock to Rs 320, but profit booking activities led to a correction, settling the closing price at the lower circuit of Rs 294.50 on the first day.
Despite this correction, IPO investors still reaped a commendable profit of around 110 percent. The successful listing of LawSikho on the NSE SME platform not only enhances the company’s visibility but also positions it as a promising player in the competitive edtech market.
Allocation of IPO Proceeds
The IPO comprised new shares worth Rs 57.92 crore and an additional 1.60 lakh shares valued at Rs 2.24 crore sold under the offer for sale window.
The proceeds from the offer for sale will benefit shareholders selling the shares, while funds raised through new shares will be strategically allocated.
LawSikho plans to utilize the IPO proceeds for diverse purposes, including acquisitions in India and abroad, technological investments, development of new courses, branding and marketing initiatives, meeting working capital needs, and addressing general corporate requirements.
This strategic allocation reflects ALT’s forward-looking approach, intending to leverage the funds for growth, innovation, and market expansion.
ALT’s Diverse Offerings
Addictive Learning Technology operates as an edtech platform, providing upskilling and career services through multiple brands, including LawSikho, Skill Arbitrage, and DataIsGood.
These brands cater to a broad spectrum of professional domains, offering specialized courses and training programs.
LawSikho, in particular, has emerged as a prominent player in the legal education space, offering courses that bridge the gap between traditional legal education and the practical skills required in the industry.
Financial Performance and Growth Trajectory
Examining the financial health of ALT, it is evident that the company has undergone a transformative journey. In the financial year 2021, ALT reported a net loss of Rs 54 thousand, indicating a challenging start.
However, the subsequent financial year 2022 saw an increase in the net loss to Rs 49.07 lakh. The resilience of ALT became apparent in the financial year 2023, as the company turned the tide and achieved a net profit of Rs 2.47 crore.
This marked a significant shift in fortunes, showcasing the adaptability and strategic decision-making of ALT’s leadership.
During this period, ALT also demonstrated robust revenue growth, boasting a Compound Annual Growth Rate (CAGR) of more than 122 percent annually.
The revenue escalated to Rs 33.54 crore in FY 2023, a testament to the scalability and market acceptance of ALT’s offerings.
As of the ongoing financial year, from April to August 2023, ALT continued its positive trajectory, reporting a net profit of Rs 3.16 crore and a revenue of Rs 24.82 crore.
This consistent and impressive financial performance positions ALT as a formidable player in the edtech sector.
Future Plans and Market Outlook
The funds raised through the successful IPO will play a crucial role in shaping ALT’s future trajectory.
The company’s stated objectives, including acquisitions, technological investments, course development, branding, marketing, working capital augmentation, and general corporate needs, reflect a comprehensive and strategic approach to growth. ALT’s plans for expansion in India and abroad indicate a global vision, leveraging its edtech expertise to tap into diverse markets.
The broader outlook for the edtech sector remains positive, driven by factors such as increasing digital adoption, evolving learning preferences, and the need for continuous upskilling in a rapidly changing professional landscape. LawSikho, with its specialized focus on legal education, is well-positioned to capitalize on the demand for niche, career-oriented courses.
The successful IPO listing has not only provided the necessary capital but has also enhanced LawSikho’s visibility and credibility in the competitive edtech ecosystem.
Final Thoughts
In conclusion, the LawSikho IPO listing stands as a testament to the success of Addictive Learning Technology in the dynamic and competitive edtech sector.
The overwhelming response from investors, the significant listing gains, and the strategic allocation of IPO proceeds position ALT as a noteworthy player with a robust growth trajectory.
The financial turnaround from losses to profits, coupled with impressive revenue growth, underscores ALT’s adaptability and market resilience.
As ALT charts its course for expansion and innovation, the LawSikho IPO marks a pivotal moment in the company’s journey, symbolizing not only its current success but also its promising future in the evolving landscape of educational technology.
