Wagons Learning Limited is a prominent provider of corporate training, digital learning, and skill development solutions, operating on a B2B business model. The company offers training and certifications, digital learning solutions, skill development, trainer outsourcing, and payroll management services to a wide array of clients. With a strong foundation in corporate training and coaching, Wagons Learning aims to further expand its business offerings through its upcoming Initial Public Offering (IPO).

This IPO marks an important milestone for Wagons Learning as it seeks to raise ₹ 38.38 Crores, with a Fresh Issue of ₹ 25.26 Crores and an Offer for Sale (OFS) of ₹ 13.12 Crores. The subscription period for this IPO opens on May 02, 2025, and closes on May 06, 2025. Allotment results are expected to be finalized on or about May 07, 2025, with the listing scheduled for May 09, 2025, on the BSE SME platform.

Key IPO Details:

• Price Band: ₹ 78 to ₹ 82 per share.

• Market Capitalization: At the higher price band of ₹ 82 per share, Wagons Learning will have a market capitalization of ₹ 127.92 Crores.

• Lot Size: 1,600 shares.

• Investment Details:

  • Retail investors must make a minimum investment of ₹ 1,31,200 for one lot of 1,600 shares.

  • High-Net-Worth Individuals (HNIs) must apply for a minimum of two lots, amounting to ₹ 2,62,400 for 3,200 shares.

Lead Managers and Registrar:

• Book Running Lead Manager: KHANDWALA SECURITIES LIMITED.

• Registrar: CAMEO CORPORATE SERVICES LIMITED.

• Market Maker: Rikhav Securities Limited.

Grey Market Premium (GMP):

As of now, the Grey Market Premium for Wagons Learning Limited is ₹ 0, indicating no significant trading interest in the shares before listing. The Grey Market Premium (GMP) reflects the unofficial market price at which shares are bought and sold before the formal listing, but it should be noted that trading in this market is not regulated and is not advised for decision-making purposes.

Live Subscription Status:

The Wagons Learning IPO will open for subscription on May 02, 2025. Investors can check the live subscription status on the BSE SME platform.

IPO Allotment Details:

Investors can check the IPO allotment status starting from May 07, 2025. The process to check the allotment status is simple:

• Visit the registrar’s website.

• Select Wagons Learning Limited IPO from the list.

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

• Submit to view your allotment status.

Objectives of the IPO:

Wagons Learning plans to utilize the net proceeds from the IPO for the following purposes:

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

2. Debt Repayment: ₹ 450.00 Lakh for prepayment or repayment of outstanding borrowings.

3. General Corporate Purposes: To fund operational and other corporate expenses.

4. Offer-related Expenses: Cover costs associated with the IPO process.

Financial Performance:

The financial performance of Wagons Learning reflects steady growth over the last few years. The company’s revenues from operations have increased from ₹ 988.95 Lakh in 2022 to ₹ 3,323.46 Lakh in 2024. In terms of profitability, Wagons Learning has improved its EBITDA and PAT, with the company posting ₹ 554.39 Lakh in Profit After Tax (PAT) for FY 2024.

Valuation and Investment Recommendation:

The pre-issue EPS stands at ₹ 4.48, while the post-issue EPS is ₹ 3.60. The IPO’s price-to-earnings (P/E) ratio is 18.30x (pre-issue) and 22.79x (post-issue), which is relatively close to the industry P/E ratio of 23x. The company’s Return on Capital Employed (ROCE) for FY24 is 45.27%, and its Return on Equity (ROE) stands at 60.80%. These financial metrics indicate that the company is well-established and has strong growth potential.

However, the Grey Market Premium (GMP) of ₹ 0 suggests that there may not be significant interest in the IPO in the short term. Given the company’s steady financial performance and the fair pricing of the IPO, we recommend that investors approach the Wagons Learning IPO with caution.

Conclusion:

While Wagons Learning is an established player in the corporate training and digital learning sector, the IPO appears to be fairly priced. Investors should carefully consider the financial metrics, the market conditions, and the company’s growth prospects before making an investment decision. Given the low GMP and current market conditions, we recommend avoiding the Wagons Learning Limited IPO for short-term gains but may consider it for long-term investment depending on further developments post-listing.

Disclaimer: This article provides information based on available data and should not be construed as financial advice. Investors should conduct thorough research or consult with financial advisors before making any investment decisions.

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