Arihant Academy SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 16 Dec 2022 – 21 Dec 2022
- Listing date
- 29 Dec 2022
- Face value
- ₹10 per share
- Issue price
- ₹90 per share
- Lot size
- 1,600 shares
- Total issue size
- ₹14.72 Cr
- Market cap at offer price
- ₹54.50 Cr
- Promoter holding
- 100.00% → 73.00% pre-issue → post-issue
- ISIN
- INE0NCC01015
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- Ground Floor, Triveni Sadan, Opp Ambe Mata Temple, Carter Road No.3, Borivali (East), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 83,200 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹90
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,44,000 |
| S-HNI (min) | 2 | 3,200 | ₹2,88,000 |
| S-HNI (max) | 6 | 9,600 | ₹8,64,000 |
| B-HNI (min) | 7 | 11,200 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2,018.61 | — |
| P/E (×) | 0.04 | — |
| Market cap | — | ₹54.50 Cr |
Key performance indicators
- Return on net worth
- 40.98%
- ROCE
- 66.27%
- Debt / equity
- 0.26
- PAT margin
- 13.27%
- NAV per share
- ₹4,925.89
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Arihant Academy SME
Arihant Academy Limited, originally incorporated as India Tutorials Private Limited on October 30, 2007, operates under the brand name 'Arihant Academy' as a coaching and educational services provider. The company provides parallel educational support for Classes 8, 9, and 10 (both State Board and ICSE) in Western Mumbai, and conducts coaching for Classes 11 and 12 (Commerce and Science sections). The company also tutors students for competitive entrance exams including JEE (Main and Advanced), MHT-CET (State level), NEET (National level), and prepares students for professional exams such as CS (Company Secretary) and CA (Chartered Accountant) at entry and intermediate levels. As of the Prospectus date, the company operates 14 centers across Western Mumbai. The company generates revenue primarily from student coaching fees for various programs and courses.
Company Analysis
from RHPArihant Academy provides coaching and educational support services for school classes 8-12 and competitive entrance exams (JEE, NEET, MHT-CET) and professional certifications (CA, CS) across Western Mumbai.
Arihant Academy Limited, originally incorporated as India Tutorials Private Limited on October 30, 2007, operates under the brand name 'Arihant Academy' as a coaching and educational services provider. The company provides parallel educational support for Classes 8, 9, and 10 (both State Board and ICSE) in Western Mumbai, and conducts coaching for Classes 11 and 12 (Commerce and Science sections). The company also tutors students for competitive entrance exams including JEE (Main and Advanced), MHT-CET (State level), NEET (National level), and prepares students for professional exams such as CS (Company Secretary) and CA (Chartered Accountant) at entry and intermediate levels. As of the Prospectus date, the company operates 14 centers across Western Mumbai. The company generates revenue primarily from student coaching fees for various programs and courses.
Objects of the Issue
- Funding Working Capital Requirements ₹1,100.00 Lakhs p.20
- General Corporate Purposes ₹272.06 Lakhs p.20
- Funding working capital requirements ₹1,100.00 Lakhs p.71
- General corporate purposes ₹272.06 Lakhs p.72
- Funding capex for expansion of existing centers and setting up of new centers
Issue Structure
- Total Issue
- ₹1,471.68 Lakhs (16,35,200 Equity Shares at ₹90 per share)
- Fresh Issue
- ₹1,471.68 Lakhs (16,35,200 Equity Shares at ₹90 per share)
- Offer for Sale
- NA
- Price Band
- Fixed Price: ₹90 per Equity Share
- Lot Size
- 1,600 Equity Shares and in multiples thereof
- Face Value
- ₹10 per Equity Share
Business Model
Revenue is generated through student enrollment and coaching fees for various programs including parallel educational support (Classes 8-12), competitive entrance exam preparation (JEE, NEET, MHT-CET), and professional certification exam preparation (CA, CS). The company operates multiple physical coaching centers across Western Mumbai where classes are conducted.
Business Segments
SWOT Analysis
- • Hybrid model combining offline classroom teaching with digital self-paced learning through Arihant Edge App(p.97)
- • Experienced management team with 100+ years collective experience and 15+ years average education sector experience(p.98)
- • Large pool of 155 qualified faculty members with continuous in-house training on teaching methodologies(p.98)
- • Established presence with 14 operational coaching centres serving ~6,000 students across western suburbs of Mumbai(p.101)
- • Strong academic track record with demonstrated student results across multiple competitive exams(p.101)
- • Diversified course offerings across school, competitive entrance, and professional exams(p.96)
- • Established coaching institute with 25 years of combined promoter experience in the education sector(p.125)
- • Diversified educational offerings across multiple boards and streams(p.119)
- • Strong student enrollment history with over 100,000 students coached(p.120)
- • Digital infrastructure and technology integration during pandemic(p.120)
- • Dominant promoter shareholding providing control and alignment(p.137)
- • Established coaching and educational services provider with multi-location presence in Mumbai(p.206)
- • Consistent profitability growth over the review period(p.209)
- • Low financial leverage with manageable debt levels(p.231)
- • Positive net worth and strong balance sheet(p.197)
- • Hybrid delivery model combining classroom-based and digital learning(p.206)
- • Outstanding tax litigations pending against company(p.25)
- • No formal employment contracts with faculty members(p.29)
- • Concentrated geographic footprint in Mumbai(p.30)
- • All coaching centers operated on lease basis, not owned(p.33)
- • Outstanding secured borrowings of ₹66.60 Lakhs as of September 30, 2022(p.34)
- • Promoter/director litigation pending(p.26)
- • Historical statutory non-compliance and filing delays(p.33)
- • High concentration of student base in western suburbs of Mumbai limiting geographic diversification(p.96)
- • Limited to 14 operational coaching centres creating operational and management concentration(p.101)
- • Dependence on uncontrolled digital platform (Arihant Edge App) for hybrid model delivery(p.97)
- • Concentration of management and operations in western suburbs of Mumbai only(p.119)
- • Dependence on two key promoters for management and strategic direction(p.125)
- • Recent litigation involving a promoter despite settlement(p.122)
- • Secured borrowings with personal guarantees from promoters, indicating reliance on personal assets(p.121)
- • No formal dividend policy and no dividends declared since incorporation(p.143)
- • Dependence on a concentrated geographic market in western suburbs of Mumbai(p.206)
- • Revenue decline from FY2020 to FY2021(p.210)
- • Outstanding tax demands and TDS default liabilities(p.217)
- • Significant contingent income tax demand liability(p.220)
- • Small-scale operations with limited asset base(p.192)
- • Expansion of course offerings and geographic footprint(p.27)
- • Plan to expand to 15 new coaching centre locations across Mumbai over next 3 years(p.98)
- • Launch of online courses and technology-enabled coaching services to extend reach beyond geographic limits(p.99)
- • Introduction of new courses including CBSE board and professional training for corporates(p.99)
- • Franchise expansion into tier II and tier III cities in Maharashtra and India(p.99)
- • Strategic growth through mergers, acquisitions and joint ventures(p.99)
- • Growing demand for education services with India's education sector expected to reach US$225 billion by FY25(p.93)
- • Expansion of professional exam coaching (CA, CS) which was only recently launched(p.119)
- • Geographic expansion beyond western suburbs of Mumbai to capture larger markets(p.120)
- • Expansion of digital and online learning capabilities post-pandemic(p.120)
- • Development of technology-enabled learning tools and applications(p.126)
- • Expansion potential to new geographic markets beyond current western suburbs focus(p.207)
- • Increasing demand for professional entrance exam coaching (JEE, NEET, MHT-CET, CA, CS)(p.206)
- • Growth in digital and hybrid learning adoption post-COVID(p.206)
- • Broadening course offerings across multiple classes and boards(p.206)
- • Reputational dependence on student examination performance(p.26)
- • Exam pattern and curriculum changes impact course viability(p.28)
- • High fragmentation and competition from organized and unorganized players(p.32)
- • Potential for future government regulation of coaching sector(p.29)
- • COVID-19 pandemic continuing impact remains uncertain(p.27)
- • Business revenue seasonality dependent on academic cycles(p.30)
- • Plagiarism of study materials not effectively preventable(p.28)
- • Dependency on key managerial personnel and promoters(p.36)
- • Intense competition from both organized and unorganized coaching players with greater resources(p.107)
- • Price sensitivity of students and parents as primary decision factor in competitive market(p.107)
- • Continued pandemic impact and potential future disruptions to offline learning business model(p.96)
- • Dependence on student enrollment fluctuations and changes in board examination patterns(p.96)
- • Regulatory changes in education sector and compliance requirements(p.114)
- • Changing technology landscape and need for continuous digital platform updates(p.99)
- • Competitive pressure from established coaching institutes and new market entrants(p.119)
- • Regulatory compliance requirements for educational institutions including multiple state and municipal laws(p.115)
- • Dependence on student demand which may be affected by economic cycles and education policy changes(p.119)
- • Complex labor laws and employee benefit obligations affecting cost structure(p.117)
- • High competitive intensity from organized and unorganized players in coaching sector(p.215)
- • Seasonal business fluctuations tied to academic calendar and examination schedules(p.214)
- • Dependence on key teaching staff with risk of attrition(p.207)
- • Regulatory changes affecting the education and coaching sector(p.207)
- • Economic sensitivity affecting student enrollment and fee collection(p.207)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Anil Suresh Kapasi | Promoter | 35.81% | — |
| Mr. Umesh Anand Pangam | Promoter | 34.57% | — |
| Mr. Anil Suresh Kapasi | Promoter and Managing Director | 35.81% | 26.14% |
| Mr. Umesh Anand Pangam | Promoter and Whole Time Director | 34.57% | 25.23% |
| Ms. Hiral Anil Kapasi | Promoter Group | 13.31% | 9.72% |
| Ms. Kirti Umesh Pangam | Non-Executive Director and Promoter Group | 13.31% | 9.72% |
| Mr. Harsh Anil Kapasi | Non-Executive Director and Promoter Group | 1.50% | 1.09% |
| Ms. Rishika Umesh Pangam | Promoter Group | 1.50% | 1.09% |
| Ms. Sharda Suresh Kapasi | Promoter Group | Negligible | Negligible |
| Mr. Anil Suresh Kapasi | Promoter | 35.81% | — |
| Mr. Umesh Anand Pangam | Promoter | 34.57% | — |
| Mr. Anil Suresh Kapasi | Promoter | 35.81% | — |
| Mr. Umesh Anand Pangam | Promoter | 34.57% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.