Sodhani Academy Of Fintech Enablers Ltd, a fintech education provider specializing in financial training and consulting, is in the third day of its Initial Public Offering (IPO). The IPO, which aims to raise Rs 6.12 crore, has seen a strong response, particularly from retail investors. In this update, we’ll look at the latest subscription details, Grey Market Premium (GMP), and other factors influencing this IPO.
IPO Details
- Issue Open Date: September 12, 2024
- Issue Close Date: September 17, 2024
- Issue Size: Rs 6.12 Crore
- Price: Rs 40 per equity share
- Market Lot: 3000 equity shares
- Minimum Order Quantity: 3000 equity shares
- Listing On: BSE SME
Company Overview
Founded in 2009, Sodhani Academy Of Fintech Enablers Ltd focuses on providing specialized financial training, consulting, and learning services, particularly in the rapidly growing fintech sector. The company has demonstrated strong financial growth over the past few years, reflecting its position in a niche market.
Day 3 Subscription Detail
| Category |
Subscription (Times) |
| QIB |
0.34 |
| NII |
2.11 |
| Retail |
20.67 |
| Employee |
0.59 |
| Total |
13.89 |
The Retail category continues to show strong interest, with an oversubscription of 20.67 times, and the overall subscription has reached 13.89 times by the third day of the IPO. The interest from Qualified Institutional Buyers (QIB) and Non-Institutional Investors (NII) is also picking up.
Grey Market Premium (GMP)
As of the latest reports, the Grey Market Premium (GMP) for Sodhani Academy Of Fintech Enablers Ltd IPO stands at Rs 15-18 per share. This indicates growing confidence in the company’s potential, with an upward trend in the GMP reflecting positive investor sentiment. However, investors should continue to keep in mind that GMP is speculative and not the sole factor in making investment decisions.
Financial Performance
| Particulars |
FY2022 |
FY2023 |
FY2024 |
| Revenue (Rs Cr) |
2.43 Cr |
4.51 Cr |
6.81 Cr |
| Net Profit (Rs Cr) |
0.43 Cr |
1.02 Cr |
1.83 Cr |
| EPS (Rs) |
1.72 |
4.08 |
7.33 |
| Return on Net Worth (%) |
12.51% |
21.09% |
30.69% |
The company has shown a strong financial trajectory, with both revenue and net profit nearly tripling over the past three years.
Objects of the Issue
The funds raised from the IPO will be used for the following purposes:
1. Working Capital
2. Capital Expenditure
3. Debt Repayment
4. Brand Visibility
Strengths
1. Specialized Fintech Training: The company has a unique focus on fintech training, a niche that is rapidly expanding in India.
2. Experienced Faculty: The company boasts highly experienced faculty members who enhance the value of its courses.
3. Industry Ties: Sodhani Academy has strong industry partnerships, which contribute to its reputation and placement success rates.
Risk Factors
1. Competition: The fintech education sector is becoming more competitive with new players entering the market.
2. Dependence on Fintech Industry: Any slowdown or regulatory change in the fintech sector could impact the academy’s growth.
3. Economic Slowdown: A downturn in the economy may lead to reduced demand for fintech-related educational services.
Industry Outlook
The Indian fintech industry is projected to grow at a CAGR of 20-25%, providing a vast scope for training and education in this field. Sodhani Academy is well-positioned to benefit from this trend, given its established expertise and niche focus.
Review and Recommendation
With a strong GMP of Rs 15-18 per share and a total subscription of 13.89 times as of Day 3, the IPO is generating significant interest, especially from retail investors. Coupled with a positive outlook on the fintech industry, Sodhani Academy’s IPO appears to be a promising investment opportunity for investors seeking exposure to the education and fintech sectors. However, investors should carefully consider the competition and dependence on the fintech industry before making a decision.
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