Addictive Learning Technology shares listed on NSE SME platform in Tuesday’s trade at a premium of 121% on the exchanges at Rs 310 as against the IPO price of Rs 140. Following the listing, the stock fell 5% to the day’s low of Rs 294.50 around 10:20 am amid profit booking.

The initial public offering (IPO) of Addictive Learning Technology was subscribed 177.27 at the end of the final day as the issue received consolidated share bids of over 76.17 crore versus the issue size of 42.97 lakh shares. The retail portion was subscribed 279.85 times while the non-institutional investors portion was subscribed nearly 385.63 times. As for the portion allotted to qualified institutional buyers (QIBs), 9.23 crore share bids were received.

Ahead of its launch, the company had finalised the allocation of 11.92 lakh equity shares to anchor investors at an offer price of Rs 140. The allotment was worth Rs 16.69 crore with Chhatisgarh Investments cornering a lion’s share at 15.2%. It was followed by LC Radiance Fund VCC (13.51%) and Meru Investment Fund PCC- Cell 1 (12%). A total of 10 investors were made allocations under the quota.

The IPO was priced at Rs 133-140 per equity share with a face value of Rs 10 per share.

The company was officially established in September 2017, and its operational activities commenced in early 2018. It is an online educational technology platform and does not have any physical presence and maintains business online on a remote basis only using Learning Management System (LMS) for providing courses and programs to students. It relies on third-party software for providing services.

Ramanuj Mukherjee is the Promoter and Managing Director of the company. He is a co-founder of Addictive Learning Technology Limited, the entity behind LawSikho. It later added new brands like Skill Arbitrage and acquired Data Is Good.

Addictive Learning Technology financials

As per the information available on its red herring prospectus (RHP), the company reported a revenue of Rs 24.82 crore for the period ended August 31, 2023. For the year ended March 31, 2023, the revenue from operations stood at Rs 33.53 crore versus Rs 18.57 crore for the year ended March 31, 2022.The profit after tax (PAT) for the period ended August 31, 2023, stood at Rs 3.15 crore. For the year ended March 31, 2023, the PAT stood at Rs 2,47 crore versus a loss of Rs 49.07 lakh for the year ended March 31, 2022.

The company intends to utilise the net proceeds from the IPO towards meeting the expenses for identified acquisition, investment in technology and development of new courses. It will also use the proceeds towards branding & marketing and for working capital requirements and general corporate purposes among other things.

Narnolia Financial Services Limited is a book-running lead manager (BRLM) while Maashitla Securities Private Limited is the registrar of the issue. The sponsor bank is YES Bank.

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