Wagons Learning Limited, a leading corporate training and skill development solutions provider, is gearing up for its Initial Public Offering (IPO). The company, which operates on a B2B model, offers a wide range of services, including Training and Certifications, Digital Learning Solutions, and Skill Development services. Their portfolio also includes trainer outsourcing and payroll management solutions, catering to businesses seeking comprehensive workforce development.

Wagons Learning IPO Overview

• Issue Size & Structure: The Wagons Learning IPO is a Book Built Issue totaling ₹38.38 Crores. This is split into a Fresh Issue of 30.80 Lakh Shares worth ₹25.26 Crores, and an Offer for Sale (OFS) of 16.00 Lakh Shares amounting to ₹13.12 Crores.

• Subscription Period: The IPO will open on May 2, 2025, and close on May 6, 2025.

• IPO Price Band: The price band for the IPO is set between ₹78 and ₹82 per equity share, with a lot size of 1,600 shares.

• Market Capitalization: The company will have a market capitalization of approximately ₹127.92 Crores at the upper price band of ₹82 per share.

Financial Overview

Wagons Learning's financials show significant growth, with Revenues from Operations reaching ₹3,323.46 Lakh for the period ending Dec 31, 2024. Their EBITDA for the same period was ₹844.17 Lakh, and the Profit After Tax (PAT) stood at ₹554.39 Lakh, showing strong financial performance.

The Pre-issue EPS stands at ₹4.48, while the Post-issue EPS is projected to be ₹3.60 for FY24. With a Pre-issue P/E ratio of 18.30x and a Post-issue P/E ratio of 22.79x, the valuation appears fairly priced when compared to the industry P/E of 23x. The company's ROCE for FY24 is 45.27%, and its ROE is a strong 60.80%, reflecting excellent profitability metrics.

Objectives of the IPO

Wagons Learning aims to utilize the funds raised from the IPO for the following key purposes:

1. Working Capital: ₹750.00 Lakh will be used to meet the company's working capital requirements.

2. Debt Repayment: ₹450.00 Lakh is earmarked for the prepayment or repayment of certain outstanding borrowings.

3. Offer-Related Expenses: The company will allocate a portion of the funds for the expenses associated with the IPO process.

4. General Corporate Purposes: Funds will also be used for other corporate activities as deemed necessary.

IPO Grey Market Premium (GMP) & Listing Expectations

The Grey Market Premium (GMP) for Wagons Learning IPO is currently ₹0, indicating no price premium ahead of listing. This suggests that the IPO may face limited excitement or interest in the grey market. As the Grey Market Premium is based on demand and supply in the unregulated market, it is not a reliable indicator for IPO performance.

Wagons Learning IPO Allotment Status

The allotment process for Wagons Learning IPO will be finalized on May 7, 2025, with the listing scheduled for May 9, 2025. To check the allotment status:

• Visit the registrar's website for IPO allotment status.

• Select Wagons Learning Limited IPO from the dropdown list.

• Enter your application number, PAN, or DP Client ID to check the status.

Subscription Status & Expected Listing

Wagons Learning’s IPO is likely to attract moderate investor interest. The subscription details will be available live once the issue opens on May 2, 2025. Given the stable financials and relatively fair valuation, the listing could witness a neutral to moderate response.

Conclusion & Investment Recommendation

Despite a solid track record and growth prospects in the corporate training and digital learning space, the Wagons Learning IPO is currently not expected to yield immediate listing gains based on the GMP trend and valuation. The Pre-issue P/E ratio of 18.30x and Post-issue P/E ratio of 22.79x suggests that the stock is fairly priced.

For long-term investors, Wagons Learning offers a promising proposition with strong profitability metrics, including an impressive ROCE of 45.27% and ROE of 60.80%. However, considering the lack of GMP and potential volatility, it is advisable to proceed cautiously and avoid the IPO for short-term gains.

Investors interested in long-term growth can evaluate the company's performance post-listing and make an informed decision after the stock's market debut.

The Upcoming IPOs in this week and coming weeks are Arunaya Organics,Kenrik Industries,Wagons Learning,Srigee DLM.

The Current active IPO are Ather Energy, Iware Supplychain Services.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.