Arihant Academy Limited IPO : Financials, Pros and Cons

Arihant Academy Limited initiated its business operations in 2007. The company is involved in the education segment. It provides coaching to students of 8 to 12 standard (science and commerce) with online as well as offline mode of studies. Hence it is capable of providing a hybrid mode of education to students. Arihant Academy Limited also provides tutoring for difficult exams such as JEE, MHT-CET, NEET, CS, CA etc. The company started with 2 branches initially and before the takeover it had 8 branches all together. After Arihant Academy’s takeover the company has 14 branches and more than 6000 students have been taught so far across them.

IPO DETAILS

Arihant Academy Limited IPO is set to launch on 16 Dec., 2022. The subscription timeline extends till 21 Dec., 2022. The size for the IPO is 14.72 Crore Rs.. Shares issued through fresh issues are worth 14.72 Crore Rs. No Shares are issued through Offer For Sale mode. The lot size is 1600 shares and the price is 90 Rs per share. The company is going to get listed at NSE SME. The face value per share is Rs.10 and this is a fixed price issue. The registrar for the company is BigShare Services Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IMPORTANT DATES

Arihant Academy Limited IPO begins for subscription from 16 Dec., 2022. The IPO subscription would continue till 21 Dec., 2022. The allotment status for the shareholders who applied would come on 26 Dec., 2022. The refunds for the ones who did not get allotment would be initiated on 27 Dec., 2022. The DEMAT accounts of shareholders would be credited on 28 Dec., 2022. The listing of the company would be accompanied on 29 Dec., 2022.

Lead Managers

The lead managers are :

• Shreni Shares Private Limited

The minimum lot size for the company is decided at 1600 shares. This holding accounts to  144000 Rs.. The maximum lot size is decided at 3200 shares (HNI). This amounts to 288000 Rs.. Hence the company’s final holdings would be set as :

OBJECTIVES FOR THE IPO

• For General corporate purposes.

COMPANY FINANCIALS

Arihant Academy Limited has an asset bae of 1104 Lakh Rs in 2022. The same was 814 Lakh Rs in 2020. The company’s revenue has been decreasing and is not constant. The revenue generated was 1921 Lakh Rs in 2020 which increased to 1409 Lakh Rs in 2021. The revenue lastly recorded in 2022 was 1532 Lakh Rs. In contrast to the revenue generation decreasing, the profitability of the company is increasing. The profits of the company were 42 lakh rs in 2020 which increased to 112 lakh Rs in 2021 and 202 lakh Rs in 2022. Hence with a decrease in revenue the company is still able to generate more profits. This is identical to the revenue strategy that is working out for the firm.

PROS

• Arihant Academy provides coaching to students of 8 to 12 standard (science and commerce) with online as well as offline mode of studies. Hence it is capable of providing a hybrid mode of education to students.
• The company has 14 branches and more than 6000 students have been taught so far across them.

CONS

• The company’s financials are improving but yet have a smaller profit margin than it should be getting in comparison to the revenue generated and assets held.
• The company works in a highly competitive segment.

Arihant Academy Limited IPO APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

1. Logging into Zerodha console through its website or KITE platform.
2. Clicking the IPO link present in the Portfolio section.
3. Click the Arihant Academy Limited IPO button and press the BID button.
4. Entering the details asked for like UPI ID, Quantity and price.
5. Submit the application form for the IPO.
6. Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.