Wagons Learning Limited, a leading provider of corporate training, digital learning, and skill development solutions, is offering its shares through an IPO. The company operates on a B2B model, offering services such as training and certifications, skill development solutions, payroll management, and trainer outsourcing.

Company Overview

Wagons Learning is focused on providing high-quality corporate training and digital learning solutions to businesses. Their client base includes companies seeking to enhance the skill sets of their employees through tailored training programs. With a strong foothold in the education and skill development sector, Wagons Learning has carved a niche for itself as a reliable provider of corporate solutions.

IPO Details

Wagons Learning’s IPO is a book-built issue amounting to ₹ 38.38 crores, comprising both a fresh issue of ₹ 25.26 crores and an offer for sale of ₹ 13.12 crores. The share price is set in the range of ₹ 78 to ₹ 82 per equity share, with a market capitalization of ₹ 127.92 crores at the upper price band.

• Subscription Period: The IPO opens on May 2, 2025, and closes on May 6, 2025.

• Allotment Date: May 7, 2025.

• Listing Date: Expected on May 9, 2025, on the BSE SME platform.

The lot size for this IPO is 1,600 shares, with a minimum investment requirement of ₹ 1,31,200 for retail investors. High-Net-Worth Individuals (HNIs) are required to invest in a minimum of two lots, or ₹ 2,62,400.

Financials and Growth Performance

Wagons Learning has shown a steady increase in revenues over the past few years, with the company reporting ₹ 3,323.46 lakh in revenue for the fiscal year ending December 31, 2024. The EBITDA for this period was ₹ 844.17 lakh, a notable increase compared to previous years, indicating strong financial performance.

• Profit After Tax (PAT): ₹ 554.39 lakh for FY 2024, up from ₹ 561.21 lakh in FY 2023.

• Pre-issue EPS: ₹ 4.48

• Post-issue EPS: ₹ 3.60

These financial results reflect a solid upward trend in profitability and revenue growth, underscoring the company's ability to scale its services in the competitive B2B sector.

IPO Valuation and P/E Ratios

The pre-issue P/E ratio for Wagons Learning is 18.30x, while the post-issue P/E ratio stands at 22.79x, compared to the industry P/E ratio of 23x. This indicates that the company’s IPO is reasonably priced, and the valuation falls within industry standards.

• ROCE for FY 2024: 45.27%

• ROE for FY 2024: 60.80%

• RoNW for FY 2024: 60.80%

These metrics suggest a high return on equity and capital employed, reflecting strong operational efficiency and profitability. The IPO is well-priced for investors seeking a balance between valuation and growth potential.

Grey Market Premium (GMP)

As of the latest data, the Grey Market Premium (GMP) for Wagons Learning is ₹ 0, indicating that there is no significant trading activity in the grey market. This typically suggests a lack of speculative interest in the IPO at the moment, possibly due to limited demand or investor caution regarding the listing.

Subscription Status

As of May 2, 2025, the Wagons Learning IPO is subscribed 0.01 times on the first day of its subscription period. This indicates limited early interest, but it is important to monitor the trend as the subscription period progresses.

Objectives of the IPO

The company plans to utilize the net proceeds from the IPO for the following purposes:

1. ₹ 750 lakh will be used to meet the working capital requirements.

2. ₹ 450 lakh will go towards the repayment of outstanding borrowings.

3. The remaining funds will cover offer-related expenses and general corporate purposes.

Expert Recommendation

Given the company's strong financial growth, solid management, and reasonable pricing, the Wagons Learning IPO presents a decent investment opportunity for investors looking to participate in the education and skill development sector. However, with a current GMP of ₹ 0, potential investors may want to approach this IPO cautiously, especially if they are expecting immediate listing gains.

Recommendation: Investors should avoid the Wagons Learning Limited IPO for listing gains, but consider it if looking for exposure to the corporate training and skill development sector for long-term growth. The company’s robust financials and industry positioning make it a solid choice for long-term investors, provided they are comfortable with the risks associated with IPO investments.

The Upcoming IPOs in this week and coming weeks are Srigee DLM, Manoj Jewellers.

The Current active IPO are Wagons Learning, Kenrik Industries, Arunaya Organics.

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