Sodhani Academy of Fintech Enablers is a prominent entity in the financial literacy and awareness domain, specializing in training, consultancy, and learning services. Their focus is on equipping learners with essential financial concepts and skills for informed financial decision-making.

The Initial Public Offering (IPO) for Sodhani Academy of Fintech Enablers is a Fixed Price Issue totaling ₹6.12 Crores. This includes a Fresh Issue of 9.7 lakh shares worth ₹3.88 Crores and an Offer for Sale of 5.6 lakh shares amounting to ₹2.24 Crores. The subscription period begins on September 12, 2024, and concludes on September 17, 2024. Allotment is expected to be finalized on September 18, 2024, with shares listed on the BSE SME on September 20, 2024.

The share price is fixed at ₹40 per share, with a minimum lot size of 3,000 shares. Retail investors must invest a minimum of ₹120,000, while High-Net-Worth Individuals (HNIs) need to invest in a minimum of 2 lots or 6,000 shares, totaling ₹240,000.

IPO Management

SRUJAN ALPHA CAPITAL ADVISORS LLP is the book-running lead manager, Cameo Corporate Services Limited is the registrar for the issue, and Prabhat Financial Services Limited is the sole Market Maker for the IPO.

Grey Market Premium

The Grey Market Premium (GMP) for the Sodhani Academy of Fintech Enablers IPO is anticipated to range between ₹14 to ₹16. GMP reflects speculative trading in the unorganized market and is provided for informational purposes only. It does not guarantee actual listing gains.

Subscription Status

As of 00:00 PM on September 12, 2024, the IPO's live subscription status indicates the IPO has been subscribed x times on its first day. For real-time updates on the Sodhani Academy of Fintech Enablers IPO subscription status, investors should check the NSE website.

Allotment Details

The allotment date for the IPO is September 18, 2024. To check the allotment status online, follow these steps:

Visit the IPO allotment status page.

Select Sodhani Academy of Fintech Enablers Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Objectives of the IPO

The proceeds from the Fresh Issue will be used for:

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

₹60.00 Lakhs for Information Technology (Hardware and Software) procurement.

₹50.00 Lakhs for content development for course material.

₹35.00 Lakhs for enhancing brand visibility and awareness.

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

₹75.00 Lakhs for general corporate purposes.

Financial Performance and Valuation

Sodhani Academy of Fintech Enablers has demonstrated stable financial performance:

Revenue increased from ₹188.19 Lakhs in FY22 to ₹306.95 Lakhs in FY24.

EBITDA rose from ₹173.40 Lakhs in FY22 to ₹241.27 Lakhs in FY24.

PAT grew from ₹123.91 Lakhs in FY22 to ₹183.17 Lakhs in FY24.

For the IPO, shares are offered at a pre-issue EPS of ₹3.88 and a post-issue EPS of ₹3.21. The pre-issue P/E ratio is 10.30x, and the post-issue P/E ratio is 12.46x, compared to the industry P/E ratio. The company's ROCE for FY24 is 36.77%, and RoAE is 32.33%, indicating that the IPO is reasonably priced.

IPO Review

Given the steady financial performance and valuation metrics, the IPO presents a potential opportunity for listing gains with a GMP range of ₹14 to ₹16. The investment is recommended primarily for those with a higher risk tolerance and interest in the fintech training domain.

Disclaimer: The information provided is for educational purposes only and should not be considered financial advice. Investors should seek professional guidance tailored to their individual circumstances before making investment decisions.

About the Author

CA Abhay Kumar, also known as CA Abhay Varn, is a Chartered Accountant and SEBI Registered Research Analyst with over 8 years of experience in the stock market. He specializes in both technical and fundamental analysis to guide investment decisions.

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