Addictive Learning Technology Limited IPO (LawSikho India Learning India Earning)

Addictive Learning Technology Limited IPO (LawSikho India Learning India Earning) In a significant development in the financial landscape, Lawsikho, a prominent legal education provider, is set to launch its Initial Public Offering (IPO) worth Rs 60.16 crores. This book-built issue comprises a fresh issue of 41.37 lakh shares, amounting to Rs. 57.92 crores, and an offer for sale of 1.6 lakh shares, totaling Rs 2.24 crores.

Scheduled to open for subscription on January 19, 2024, the Lawsikho IPO offers investors a unique opportunity to be part of the growing legal education sector. The subscription window will close on January 23, 2024, with allotment results expected by January 24, 2024. The IPO is poised to debut on the NSE SME on January 29, 2024.

Investors can participate in the IPO within the price band of Rs. 130 to Rs. 140 per share, with a minimum lot size of 1000 shares. Retail investors are required to make a minimum investment of Rs. 140,000, while High Net Worth Individuals (HNI) need to consider a minimum investment of Rs. 280,000 for 2 lots (2,000 shares).

Narnolia Financial Services Ltd serves as the book running lead manager, and Maashitla Securities Private Limited is the registrar for the issue. Market makers for Lawsikho IPO include Ss Corporate Securities and Prabhat Financial Services.

For comprehensive details, investors can refer to the Lawsikho IPO Red Herring Prospectus (RHP). Don’t miss out on this exciting opportunity to invest in the future of legal education.

Lawsikho IPO Details

Lawsikho Initial Public Offering (IPO). Scheduled from January 19 to January 23, 2024, this book-built issue boasts a face value of Rs. 10 per share and a competitive price band of Rs. 130 to Rs. 140 per share. With a lot size of 1000 shares, it provides flexibility for both retail and high-net-worth investors.

Impressive Figures: The total issue size stands at 4,297,000 shares, aggregating up to Rs. 60.16 Cr. A substantial fresh issue of 4,137,000 shares, valued at Rs. 57.92 Cr, showcases the company’s growth ambitions. An offer for sale of 160,000 shares, each at Rs. 10, amounts to Rs. 2.24 Cr, adding diversity to the investment mix.

Market Dynamics: Listed on NSE SME, Lawsikho IPO demonstrates a pre-issue shareholding of 11,772,732, set to rise post-issue to 15,909,732. Notably, a market maker portion of 316,000 shares adds depth to the offering.

Strategic Considerations : As investors navigate this opportunity, strategic pricing, robust issue size, and the company’s vision for growth make Lawsikho IPO a compelling prospect. Stay tuned for this market event that combines education and investment seamlessly. For detailed insights, refer to the table below.

Key Metrics	Values
IPO Date	Jan 19, 2024, to Jan 23, 2024
Face Value	₹10 per share
Price Band	₹130 to ₹140 per share
Lot Size	1000 Shares
Total Issue Size	4,297,000 shares (₹60.16 Cr)
Fresh Issue	4,137,000 shares (₹57.92 Cr)
Offer for Sale	160,000 shares (₹2.24 Cr)
Issue Type	Book Built Issue IPO
Listing At	NSE SME
Shareholding Pre-Issue	11,772,732
Shareholding Post-Issue	15,909,732
Market Maker Portion	316,000 shares

Lawsikho IPO Timeline Tentative Schedule

IPO Opening and Closing Dates: The Lawsikho IPO is scheduled to open its subscription window on Friday, January 19, 2024, providing investors ample time to evaluate and participate. The window, however, will close on Tuesday, January 23, 2024, marking the conclusion of the subscription period.

Post-Subscription Events: Following the closure, investors can expect key events to unfold promptly. The basis of allotment, a critical step in the IPO process, is slated for Wednesday, January 24, 2024. The initiation of refunds and the credit of shares to demat accounts is set for Thursday, January 25, 2024, streamlining the post-subscription procedures.

Listing and UPI Mandate Confirmation: The Lawsikho IPO is scheduled to make its debut on the stock exchange on Monday, January 29, 2024, bringing the anticipation to fruition. Importantly, investors are reminded that the cut-off time for UPI mandate confirmation is 5 PM on January 23, 2024, ensuring a smooth and timely process.

IPO Open Date	Friday, January 19, 2024
IPO Close Date	Tuesday, January 23, 2024
Basis of Allotment	Wednesday, January 24, 2024
Initiation of Refunds	Thursday, January 25, 2024
Credit of Shares to Demat	Thursday, January 25, 2024
Listing Date	Monday, January 29, 2024
Cut-off time for UPI mandate confirmation	5 PM on January 23, 2024

Lawsikho IPO Reservation

In a strategic move to cater to the diverse investor landscape, Lawsikho IPO has outlined specific reservations for different investor categories. 

Qualified Institutional Buyers (QIBs): A prudent approach has been taken to reserve not more than 50% of the net issue for Qualified Institutional Buyers (QIBs). This ensures a balanced distribution, allowing institutional investors to partake in the offering without overshadowing retail and high-net-worth investors.

Retail Investors: With a focus on inclusivity, Lawsikho IPO has earmarked not less than 35% of the net issue for retail investors. This reserved portion provides an equitable chance for individual investors to engage in the IPO, aligning with the company’s commitment to broad market participation.

Non-Institutional Investors (NIIs) or High Net Worth Individuals (HNIs): Recognizing the significance of high-net-worth individuals in the investment landscape, Lawsikho IPO allocates not less than 15% of the net issue to Non-Institutional Investors (NIIs) or High Net Worth Individuals (HNIs). This targeted reservation acknowledges the distinctive investment needs and preferences of this category.

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50% of the Net Issue
Retail Shares Offered	Not less than 35% of the Net Issue
NII (HNI) Shares Offered	Not less than 15% of the Net Issue

Strategic Insights into Lawsikho IPO Anchor Investors

In a testament to its appeal among institutional investors, Lawsikho IPO successfully secured Rs. 16.70 crore during the anchor bidding phase held on January 18, 2024. This crucial pre-offering investment phase provides key insights into the market’s confidence in Lawsikho’s potential.

Anchor Investment Overview: During the anchor bidding process, a total of 1,193,000 shares were offered, amounting to a substantial anchor portion size of Rs. 16.70 crore. This infusion of capital from anchor investors is indicative of the trust they place in Lawsikho’s future performance and growth trajectory.

Lock-in Period Considerations: To ensure a commitment to the company’s long-term objectives, anchor investors are subject to lock-in periods. For 50% of the anchor investor shares, the lock-in period concludes on March 7, 2024, marking 30 days from the IPO listing. The remaining 50% of the shares have a lock-in period extending until June 7, 2024, demonstrating a 90-day commitment.

Bid Date	January 18, 2024
Shares Offered	1,193,000
Anchor Portion Size (In Cr.)	16.70
Anchor lock-in period end date for 50% shares (30 Days)	March 7, 2024
Anchor lock-in period end date for remaining shares (90 Days)	June 7, 2024

Lawsikho IPO Grey Market Premium (GMP)

The Lawsikho SME IPO can gain insights into the market sentiment through the Grey Market Premium (GMP). As of January 13th, 2024, the last reported GMP stands at Rs. 125, indicating a positive market outlook.

Estimated Listing Price and Potential Gain: Considering the GMP and the price band of Rs. 140.00, the Lawsikho SME IPO’s estimated listing price is anticipated to be Rs. 265 (cap price + today’s GMP). This suggests a potential percentage gain of 89.29% per share. Investors should note that GMP provides a snapshot of market expectations and may fluctuate based on market dynamics.

Retail Subject to Sauda and Daily GMP Trends: Retail investors subject to Sauda have an estimated investment benchmark of Rs. 95,000. Regular updates on GMP, derived from the last 8 sessions of grey market activities, indicate an upward trend, hinting at a strong listing. The GMP range varies from Rs. 0 to Rs. 125, showcasing market dynamics.

Investors are encouraged to stay informed about daily GMP trends to understand the evolving market sentiment and the expected listing price of Lawsikho SME IPO. The grey market serves as an additional tool for investors to assess the potential market reception of the IPO before its official listing.

Lawsikho Day-wise IPO GMP Trend

GMP Date	IPO Price	GMP	Sub2 Sauda Rate	Estimated Listing Price	Last Updated
13-01-2024	140.00	₹125 Up	95000	₹265 (89.29%)	13-Jan-2024 12:55
12-01-2024	140.00	₹95 Down	72200	₹235 (67.86%)	12-Jan-2024 23:26
11-01-2024	140.00	₹125 Up	95000	₹265 (89.29%)	11-Jan-2024 23:26
10-01-2024	140.00	₹100 Up	76000	₹240 (71.43%)	10-Jan-2024 23:23
09-01-2024	140.00	₹95 Up	72200	₹235 (67.86%)	9-Jan-2024 23:32
08-01-2024	140.00	₹45 Up	34200	₹185 (32.14%)	8-Jan-2024 23:26
07-01-2024	140.00	₹0 No change	—	₹ (0%)	7-Jan-2024 6:03
06-01-2024	140.00	₹0 No change	—	₹ (0%)	6-Jan-2024 6:02

Lawsikho IPO Lot Size

The lot size is crucial for investors planning to participate in the Lawsikho IPO. The flexibility offered ensures that both retail and High Net Worth Individuals (HNI) can tailor their investments according to their preferences and financial capacities.

Investment Options for Retail Investors: Retail investors have the opportunity to bid for a minimum of 1000 shares, constituting one lot. The minimum investment for retail investors is Rs. 140,000, reflecting the company’s commitment to inclusive participation. Interestingly, the maximum investment for retail investors remains the same at Rs. 140,000, emphasizing equality in investment opportunities.

Customized Investment Approach for HNI: High Net Worth Individuals (HNI) can take advantage of a more substantial investment opportunity. With a minimum lot size of 2, HNI investors can bid for 2,000 shares, requiring an investment of Rs. 280,000. This option allows HNIs to leverage their financial capacity and actively participate in the IPO process.

Application	Lots	Shares	Amount
Retail (Min)	1	1000	₹140,000
Retail (Max)	1	1000	₹140,000
HNI (Min)	2	2000	₹280,000

Lawsikho IPO Promoter Holding

The promoters, Mr. Ramanuj Mukherjee and Mr. Abhyudaya Sunil Agarwal, play a pivotal role in shaping the company’s vision and direction.

Pre-Issue and Post-Issue Promoter Holding: Before the IPO, the promoters collectively held a significant 92.27% stake in the company, underscoring their commitment to Lawsikho’s growth and success. Post the issue, the promoter holding is expected to decrease to 67.27%, reflecting the dilution of their stake as new investors participate in the IPO.

Implications for Investors: The shift in promoter holding post the IPO signals an opening for external investors to become stakeholders in Lawsikho. This change can enhance liquidity in the market and potentially bring in new perspectives and expertise as the company moves into the public domain.

Share Holding Pre Issue	92.27%
Share Holding Post Issue	67.27%

Overview Addictive Learning Technology Limited

Incorporated in September 2017, Addictive Learning Technology Limited stands as a beacon of innovation in the educational technology sector. With a focused approach on senior and mid-career professionals, as well as young professionals, the company specializes in upskilling and career services.

Diverse Course Offerings: Under three distinct brands—LawSikho, Skill Arbitrage, and Dataisgood—the company offers a diverse range of courses covering Law, Finance, Compliance, Human Resources, Business Consulting, Artificial Intelligence, Content Writing, and Data Science. These courses cater to the evolving needs of professionals seeking to advance their skills in today’s dynamic job market.

International Bar Exam Courses: Addictive Learning Technology Limited extends its services globally by providing specialized courses for international bar exams. Notable examples include the Canada Bar Exam, UK Solicitor Qualification Exam, and California Bar Exam, enabling Indian lawyers to navigate and succeed in international legal landscapes.

Accreditation and Certification: Recognizing the importance of skill development, the company’s courses are accredited by the National Skill Development Corporation (NSDC), operating as a Public-Private Partnership under the Ministry of Skill Development and Entrepreneurship of the Government of India. Upon successful course completion, learners receive a co-branded certificate from NSDC and Skill India, validating their newly acquired skills.

Dedicated Workforce: As of October 2023, Addictive Learning Technology Limited boasts a team of 145 full-time employees and engages the expertise of 444 full-time professionals/consultants. This dedicated workforce is instrumental in delivering high-quality education and services to the company’s diverse clientele.

With a commitment to excellence and a focus on empowering professionals across industries, Addictive Learning Technology Limited continues to shape the landscape of educational technology, fostering growth and success in the careers of its learners.

Addictive Learning Technology Limited Remarkable Financial Growth

Addictive Learning Technology Limited has showcased remarkable financial performance, demonstrating significant growth in key metrics between March 31, 2022, and March 31, 2023.

Financial Highlights (Amount in Rs. Lakhs):

Period Ended	31 Aug 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	1,324.95	920.64	103.11	65.05
Revenue	2,482.36	3,354.47	1,859.34	677.77
Profit After Tax	315.96	247.13	-49.07	-0.54
Net Worth	522.27	206.30	-40.82	-1.75
Reserves and Surplus	512.17	196.20	-50.92	-1.85
Total Borrowing	15.73	–	–	–

Revenue Surge: The company witnessed a substantial 80.41% increase in revenue, reflecting robust business operations and market demand.

Profit After Tax (PAT) Soars: Profits after tax recorded an exceptional growth of 603.63%, underscoring the company’s efficiency and financial health.

Asset Expansion: Total assets surged to Rs. 1,324.95 lakhs, showcasing an impressive upward trajectory, indicating a strengthened financial position.

Net Worth and Reserves: The net worth and reserves experienced significant positive growth, reinforcing the company’s financial resilience.

Debt Management: Total borrowing remained conservative at Rs. 15.73 lakhs, reflecting prudent financial management.

Lawsikho IPO Key Performance Indicator

The Lawsikho IPO, key performance indicators (KPIs) shed light on the company’s financial health and potential for returns. Here are the notable KPIs for Lawsikho:

Market Capitalization: Lawsikho IPO’s market capitalization stands at Rs. 222.74 Cr, reflecting the total market value of its outstanding shares.

Return on Equity (ROE): Lawsikho demonstrates an impressive Return on Equity of 119.79%, showcasing the efficiency with which it utilizes shareholder equity to generate profits.

Return on Capital Employed (ROCE): With a ROCE of 157.53%, Lawsikho indicates its proficiency in generating returns from both equity and debt capital employed in the business.

Debt/Equity Ratio: The Debt/Equity ratio of 0.08 indicates a conservative approach to leveraging, emphasizing a low level of debt relative to equity, which is often viewed positively by investors.

Return on Net Worth (RoNW): Lawsikho maintains a Return on Net Worth of 119.79%, aligning with its commitment to maximizing returns for shareholders based on their invested capital.

Price-to-Book Value (P/BV): The P/BV ratio of 0.29 suggests a potentially undervalued stock, considering the relationship between the market price and the company’s book value per share.

KPI	Values
ROE	119.79%
ROCE	157.53%
Debt/Equity	0.08
RoNW	119.79%
P/BV	0.29

Objects of the Issue Lawsikho IPO Objectives

The company outlines clear objectives for the utilization of funds raised through the issue. The key objectives are:

Unidentified Acquisition (In India or Abroad): Allocating funds to cover expenses related to unidentified acquisitions, emphasizing strategic growth opportunities either within India or internationally.

Identified Acquisition: Meeting expenses associated with identified acquisitions, showcasing the company’s commitment to expansion and potential business synergies.

Investment in Technology: Directing funds towards technology investments to enhance and upgrade the company’s educational technology platform, ensuring a cutting-edge learning experience.

Development of New Courses: Allocating resources for the creation and development of new courses, reflecting Lawsikho’s commitment to staying at the forefront of industry trends and meeting evolving learner needs.

Branding & Marketing Expenses: Meeting expenses related to branding and marketing, aiming to increase awareness and reach, thereby attracting a wider audience of professionals seeking upskilling opportunities.

Working Capital Requirements: Addressing the day-to-day operational needs of the company by meeting working capital requirements, ensuring smooth and uninterrupted business operations.

General Corporate Purposes: Utilizing funds for general corporate purposes, providing flexibility in addressing various operational and strategic needs that may arise.

Issue Expenses: Allocating funds to cover the expenses associated with the IPO issuance, ensuring a smooth and successful public offering.