Sodhani Academy of Fintech Enablers IPO: Subscription Details, Key Dates & More

Sodhani Academy of Fintech Enablers Limited, founded in 2009, offers financial training, consulting, and learning services. The company primarily focuses on financial education and awareness, providing knowledge and understanding of various financial concepts and skills that enable learners to make informed and responsible decisions in financial matters. This includes effective money management, wise budgeting, prudent saving and investing, and understanding basic financial products and services.

The organisation's learners include various categories of participants, such as students (both in active training and qualified applicants), recent graduates (collectively referred to as students), individuals who are not currently employed, and homemakers (collectively referred to as learners). These groups are reached through financial education and financial literacy courses, seminars, events, and materials.

As of 30th December 2023, the company employed 12 full-time employees and 2 professional trainers under the professional employment model.

The Objectives of the Issue

Sodhani Academy of Fintech Enablers Limited intends to utilize the net proceeds from the Offer towards the following objectives:

• Infrastructure Development: Building content Studio and Offline training infrastructure.
• Technology Procurement: Information Technology (Hardware including Software) Procurement.
• Content Creation: Content Development for course material.
• Brand Enhancement: Enhancement of brand visibility and awareness.
• LMS Development: Learning Management System (LMS) Application development.
• General Corporate Purposes: For various corporate activities aligned with the company's strategic goals.

Highlights of Sodhani Academy of Fintech Enablers IPO

Sodhani Academy of Fintech Enablers IPO is set to launch with a fixed-price issue of ₹10.50 crores. Below are the key details of the IPO:

• The IPO opens for subscription on 12th September 2024 and closes on 17th September 2024.
• The allotment is expected to be finalised on 18th September 2024.
• Refunds will be initiated on 19th September 2024.
• Credit of shares to Demat accounts is also expected on 19th September 2024.
• The company will tentatively list on BSE SME on 20th September 2024.
• The price is fixed at ₹40 per share.
• The fresh issue comprises 9.7 lakh shares, aggregating to ₹3.88 crores.
• The offer for sale comprises 5.6 lakh shares, aggregating to ₹2.24 crores.
• The minimum lot size for the application is 3000 shares.
• Retail investors need to invest a minimum of ₹120,000.
• The minimum investment for HNI is 2 lots (6,000 shares), amounting to ₹240,000.
• Srujan Alpha Capital Advisors LLP is the book-running lead manager for the IPO.
• Cameo Corporate Services Limited serves as the registrar.

Sodhani Academy of Fintech Enablers IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 17th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors must complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Sodhani Academy of Fintech Enablers IPO Issue Details/Capital History

The Sodhani Academy of Fintech Enablers IPO is scheduled from 12th September to 17th September 2024, with a fixed price of ₹40 per share and a face value of ₹10. The total issue size is 1,530,000 shares, raising up to ₹6.12 crores. This includes a fresh issue of 970,000 shares aggregating to ₹3.88 crores and an offer for sale of 560,000 shares aggregating to ₹2.24 crores. The IPO will be listed on the BSE SME, with the shareholding increasing from 4,725,000 pre-issue to 5,695,000 post-issue. The market maker portion consists of 78,000 shares.

Sodhani Academy of Fintech Enablers IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 3000 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Sodhani Academy of Fintech Enablers Ltd

Strengths:

• Proven track record of trainers in financial education and literacy
• Recognised brand image and reputation for quality in financial education
• Technology-driven, asset-neutral, and scalable business model
• Focus on practice-oriented teaching methods
• Diverse course offerings catering to various financial education needs
• A pandemic-tested model with a successful transition to online learning

Weaknesses:

• Small employee base, which may limit scalability
• A relatively niche market focus on financial education
• Potential dependence on key trainers or personnel

Opportunities:

• Growing demand for financial literacy and education
• Potential for expansion into new geographical markets or related educational fields
• Increasing trend towards online and remote learning
• Rising importance of financial skills in personal and professional life

Threats:

• Intense competition in the education and training sector
• Rapid changes in financial markets and regulations requiring constant course updates
• Economic downturns potentially affecting enrollment rates
• Potential disruptions in the education sector due to technological advancements

Financial Highlights: Sodhani Academy of Fintech Enablers Ltd

Below are the financial results for the Fiscal years FY23, FY22, and FY21:

Sodhani Academy of Fintech Enablers Limited has shown strong financial growth over the past three fiscal years. The company's assets have grown significantly, increasing from ₹67.17 lakhs in FY21 to ₹501.57 lakhs in FY23, representing a remarkable growth of about 646.7% over two years. This substantial asset increase indicates significant expansion in the company's operational capabilities and infrastructure.

Revenue has seen consistent growth, rising from ₹25.29 lakhs in FY21 to ₹203.45 lakhs in FY23, marking an impressive increase of 704.5% over two years. The year-over-year growth from FY22 to FY23 was 8.1%, indicating continued strong performance and market demand for the company's services.

The company's profitability has seen an extraordinary upward trajectory. Profit after tax rose from ₹3.08 lakhs in FY21 to ₹138.6 lakhs in FY23, representing an exceptional growth of 4,400% over two years. The year-over-year growth in PAT from FY22 to FY23 was 11.9%, showing improved operational efficiency and successful business strategies.

Net worth has shown consistent and strong growth, increasing from ₹61.34 lakhs in FY21 to ₹476.85 lakhs in FY23, a growth of about 677.4% over two years. This increase reflects the company's ability to generate and retain earnings, significantly strengthening its financial position.

Notably, total borrowings have remained relatively low, increasing slightly from ₹0.5 lakhs in FY21 to ₹2.65 lakhs in FY23, indicating that the company has primarily funded its growth through internal accruals and equity.