Sodhani Academy of Fintech Enablers is at the forefront of enhancing financial literacy and awareness. The company specializes in providing comprehensive training, consultancy, and learning services aimed at empowering individuals with the knowledge necessary to make informed financial decisions.

The upcoming IPO for Sodhani Academy is a Fixed Price Issue amounting to ₹6.12 Crores, comprised of a Fresh Issue of 9.7 Lakh Shares worth ₹3.88 Crores and an Offer for Sale of 5.6 Lakh Shares, totaling ₹2.24 Crores. The shares are set to be priced at ₹40 per equity share, with a minimum lot size of 3,000 shares. Retail investors will need to invest a minimum of ₹120,000, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹240,000 for 2 lots (6,000 shares).

The subscription period for the Sodhani Academy IPO opens on September 12, 2024, and closes on September 17, 2024. The allotment is expected to be finalized by September 18, 2024, with a tentative listing date set for September 20, 2024, on the BSE SME.

SRUJAN ALPHA CAPITAL ADVISORS LLP is acting as the book-running lead manager, while Cameo Corporate Services Limited serves as the registrar for the issue. Prabhat Financial Services Limited is the sole market maker for this IPO.

The Grey Market Premium (GMP) for Sodhani Academy is anticipated to be in the range of ₹14 to ₹16, based on the company’s financial performance. However, it's essential to note that the GMP should be viewed cautiously, as it operates outside the regulated stock exchange, and no real price discovery can occur based solely on these figures.

As of September 16, 2024, at 03:48 PM, the IPO has shown impressive interest, with a subscription status of 40.40 times on its third day. Investors eager to track their allotment status can check the registrar’s website starting from September 18, 2024. The procedure is straightforward: select Sodhani Academy of Fintech Enablers Limited IPO from the dropdown list, enter the application number, PAN, or DP Client ID, and submit the details.

The objectives of the IPO are primarily directed towards enhancing the operational capacity of the academy, which includes:

₹80.00 Lakhs for building a content studio and offline training infrastructure.

₹60.00 Lakhs for procurement of information technology hardware and software.

₹50.00 Lakhs for developing course material.

₹35.00 Lakhs for enhancing brand visibility and awareness.

₹10.00 Lakhs for developing a Learning Management System (LMS) application.

₹75.00 Lakhs for general corporate purposes.

In terms of financial stability, the Sodhani Academy has demonstrated a steady revenue trajectory, with figures increasing from ₹188.19 Lakhs in FY22 to ₹203.45 Lakhs in FY23, and currently ₹306.95 Lakhs in FY24. Similarly, EBITDA and PAT figures have also shown a stable growth pattern, indicating a robust financial health. The pre-issue EPS stands at ₹3.88, with a post-issue EPS projected at ₹3.21. The pre-issue P/E ratio is 10.30x, while the post-issue P/E ratio is 12.46x, reflecting a fairly priced IPO. The ROCE for FY24 is 36.77%, and RoAE is 32.33%, suggesting sound financial metrics.

Given the solid financial performance and valuation of the IPO, we recommend that only risk-tolerant investors consider applying to the Sodhani Academy of Fintech Enablers Limited IPO for potential listing gains or long-term investment opportunities.

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