Wagons Learning Limited is a prominent provider of corporate training, digital learning, and skill development solutions, functioning on a Business-to-Business (B2B) model. The company offers a range of services, including training and certifications, digital learning solutions, skill development, trainer outsourcing, and payroll management. With a strong focus on upskilling professionals and meeting corporate learning needs, Wagons Learning is well-positioned in the growing education and training industry.

The Wagons Learning IPO is a book-built issue with a total issue size of ₹ 38.38 Crores. The IPO consists of:

• Fresh Issue of 30.80 lakh shares worth ₹ 25.26 crores.

• Offer for Sale (OFS) of 16.00 lakh shares totaling ₹ 13.12 crores.

The price band for the IPO is set between ₹ 78 to ₹ 82 per equity share, with a lot size of 1,600 shares. Retail investors need to make a minimum investment of ₹ 1,31,200, while HNIs (High Net-Worth Individuals) must invest in 2 lots (12,000 shares), totaling ₹ 2,62,400.

The IPO's subscription period opens on May 02, 2025, and closes on May 06, 2025. The allotment date is expected on May 07, 2025, and shares are anticipated to be listed on the BSE SME on May 09, 2025.

Financial Performance and IPO Metrics

For the fiscal year ending December 31, 2024, Wagons Learning Limited reported revenues from operations of ₹ 3,323.46 Lakh, reflecting steady growth from previous years (₹ 3,350.72 Lakh in 2023, ₹ 1,616.57 Lakh in 2022, and ₹ 988.95 Lakh in 2021). The EBITDA for the same period was ₹ 844.17 Lakh, showing significant improvements from earlier years. Moreover, the Profit After Tax (PAT) stood at ₹ 554.39 Lakh for FY 2024, compared to ₹ 561.21 Lakh in 2023, ₹ 70.92 Lakh in 2022, and ₹ 9.37 Lakh in 2021.

Key financial ratios for the company are as follows:

• Pre-issue EPS: ₹ 4.48

• Post-issue EPS: ₹ 3.60

• Pre-issue P/E ratio: 18.30x

• Post-issue P/E ratio: 22.79x

• Industry P/E ratio: 23x

These figures suggest that Wagons Learning is priced fairly in comparison to industry peers.

Wagons Learning IPO Grey Market Premium (GMP)

As of now, the Grey Market Premium (GMP) for the Wagons Learning IPO is ₹ 0, indicating no expected premium in the grey market. This lack of premium is reflective of the financial performance and market sentiment regarding the company.

Subscription Status and Allotment Process

• IPO Subscription Status: As of 10:30 AM on May 05, 2025, the IPO has been subscribed 0.04 times.

• IPO Allotment Date: Investors can check the allotment status on May 07, 2025, on the registrar's website. The process involves selecting the Wagons Learning IPO from the list, entering the application number, PAN, or DP Client ID, and submitting the details to check the status.

Objectives of the IPO

The Net Proceeds from the Wagons Learning IPO will be used for the following purposes:

1. ₹ 750.00 Lakh to meet the company's working capital requirements.

2. ₹ 450.00 Lakh to prepay or repay outstanding borrowings.

3. To cover offer-related expenses.

4. For general corporate purposes.

IPO Review and Recommendation

Wagons Learning Limited has exhibited consistent growth in its financials, with a healthy EBITDA, profit after tax, and strong returns on equity (ROE) and capital employed (ROCE). However, the IPO's Grey Market Premium of ₹ 0 and its valuation (with a P/E ratio of 22.79x) suggest a fairly priced offering.

Considering the financial stability, steady revenue growth, and strong management team with experience in the commercial training and coaching industry, the Wagons Learning IPO appears to be priced appropriately but lacks any immediate listing gain potential. Therefore, it is advisable for investors to avoid this IPO for short-term gains but could be considered for long-term investment, especially if the company continues to capitalize on the growing demand for skill development and digital learning solutions.

The Current active IPO are Srigee DLM, Manoj Jewellers, Wagons Learning, Kenrik Industries.

The Closed IPOs are  Arunaya Organic, Ather Energy, Iware Supplychain Services.

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