New Delhi: Wagons Learning’s IPO closes for subscription tomorrow, May 6. The Rs.38 crore worth issue is offering shares in the price band Rs . 78-82, with the listing scheduled on the BSE SME platform on May 9.
The minimum bid is 1,600 shares, with a fresh issue of 30.8 lakh shares and an Offer for Sale of 16 lakh shares.
The company aims to use the proceeds to repay debt, and to meet working capital requirements.
As of May 5, the IPO has seen a muted response, with just 0.02x of the overall subscription.
About the company
Wagon’s Learning offers corporate training, digital learning and skill development programs. It works on a B2B model and offers sales training, customer service training and other knowledge-based training solutions for employees of corporations in various industries like automotive, banking and financial services, pharma, healthcare and other domains.
Is this IPO worth considering?
The company works in the B2B domain with a strong client footprint across industries. The demand for digital learning remains strong post-pandemic, even as it doesn’t have to face the same challenges B2C EdTech companies had. Investors are looking at this with a negative outlook, considering how other Edtech companies fared previously. Also, the lack of financial disclosure by the company has worsened matters. The red flags here are quite prominent, and only investors with a high risk appetite should consider investing here.
