Kuberan Global Edu Solutions SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 20 Apr 2021 – 27 Apr 2021
- Listing date
- 05 May 2021
- Face value
- ₹10 per share
- Issue price
- ₹20 per share
- Lot size
- 6,000 shares
- Total issue size
- ₹1.12 Cr
- Market cap at offer price
- ₹4.21 Cr
- Promoter holding
- 93.36% → 68.63% pre-issue → post-issue
- ISIN
- INE04CO01018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Fedex Securities Pvt.Ltd.
- Registered office
- 401, GES Complex, 1st Floor, 7th Street, Gandhipuram, Tamil Nadu
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 | 30,000 | — | — |
Application size
Minimum 6,000 shares per lot, in multiples, at ₹20
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 6,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 12,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 48,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 54,000 | ₹10,80,000 |
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 |
|---|---|---|
| Market cap | — | ₹4.21 Cr |
About Kuberan Global Edu Solutions SME
Kuberan Global Edu Solutions Limited is a test preparation and professional education services company incorporated in May 2013 and headquartered in Coimbatore, Tamil Nadu. The company operates in the TEST PREP segment, offering coaching services for banking courses, Master of Business Administration Entrance Exams, Staff Selection Commission (SSC), Life Insurance Corporation of India (LIC), and accounting and professional courses including Chartered Accountant (CA), Certified Management Accountant (CMA), and Company Secretary (CS). The company generates revenue from test prep business through its network of training centers and franchise partners, with additional revenue from publishing and content development. For the year ended March 31, 2020, the company reported revenue from operations of Rs. 90.85 lakhs, with franchise business contributing 15.44% of sales. The company is expanding its course offerings and distribution network across India.
Company Analysis
from RHPKuberan Global Edu Solutions Limited provides test preparation coaching and professional education courses including banking exams, MBA entrance exams, SSC, LIC, and professional courses like CA, CMA, and CS through both offline centers and online platforms.
Kuberan Global Edu Solutions Limited is a test preparation and professional education services company incorporated in May 2013 and headquartered in Coimbatore, Tamil Nadu. The company operates in the TEST PREP segment, offering coaching services for banking courses, Master of Business Administration Entrance Exams, Staff Selection Commission (SSC), Life Insurance Corporation of India (LIC), and accounting and professional courses including Chartered Accountant (CA), Certified Management Accountant (CMA), and Company Secretary (CS). The company generates revenue from test prep business through its network of training centers and franchise partners, with additional revenue from publishing and content development. For the year ended March 31, 2020, the company reported revenue from operations of Rs. 90.85 lakhs, with franchise business contributing 15.44% of sales. The company is expanding its course offerings and distribution network across India.
Objects of the Issue
- Capital expenditure for content development Rs. 65.35 lakhs p.23
- General Corporate Purposes Rs. 25.25 lakhs p.23
- Capital expenditure for Digitalizing Banking Course through online mode by using Information Technology ₹65.35 Lakhs p.77
- General Corporate Purposes ₹25.25 Lakhs p.77
- The specific objects of issue are not explicitly stated in this part of the document. References to 'Objects of the Offer' should be consulted in other sections of the prospectus.
Issue Structure
- Total Issue
- Rs. 111.60 lakhs (5,58,000 equity shares at Rs. 20 per share)
- Fresh Issue
- 5,58,000 equity shares of face value Rs. 10 each at Rs. 20 per share aggregating to Rs. 111.60 lakhs
- Price Band
- Rs. 20 per equity share (fixed price issue)
- Lot Size
- 6,000 equity shares (application lot)
- Face Value
- Rs. 10 per equity share
Business Model
The company generates revenue primarily from test prep coaching services through multiple channels: direct enrollment at company-operated test prep centers, franchise partnerships with independent training centers, and publishing and content development. Revenue is derived from student tuition fees for various competitive entrance examination preparation courses and professional courses. The company also generates revenue from content development work through related parties on a job work basis.
Business Segments
SWOT Analysis
- • Diversified test prep business across multiple professional courses(p.32)
- • Established presence in educational coaching with franchise model(p.31)
- • Positive operating cash flow generation(p.50)
- • Experienced management team with 40+ years in education sector(p.121)
- • Diverse course portfolio addressing multiple education segments(p.113)
- • Multi-modal delivery platform combining online and offline education(p.113)
- • Qualified faculty base including chartered accountants and company secretaries(p.122)
- • ISO 9001:2015 certification and industry recognition(p.113)
- • Effective in-house coaching methodology and student progress monitoring(p.122)
- • ISO 9001:2015 certification for Quality Management System(p.194)
- • Digital learning capabilities with app-based assessment and test series(p.194)
- • Diversified course portfolio across multiple segments(p.194)
- • Omnichannel delivery model with classroom and online teaching(p.194)
- • Unregistered trademark without legal IP protection(p.30)
- • Non-ownership of leased premises creates relocation risk(p.30)
- • No insurance coverage for assets and operations(p.41)
- • Promoter failed to file Income Tax Returns for four years(p.37)
- • Heavy reliance on franchise partners for revenue generation(p.31)
- • Dependence on continued student performance for reputation(p.31)
- • IPO proceeds not independently appraised by financial institutions(p.32)
- • Limited geographic presence with operations in only 4 locations(p.115)
- • Heavy dependence on promoter-held equity with 68.63% post-issue concentration(p.72)
- • Very small employee base of only 7 employees as of February 2020(p.124)
- • No registered trademark or brand protection(p.124)
- • No insurance policies in place(p.124)
- • Leased office premises with short tenure of 11 months(p.124)
- • Declining revenue trend year-over-year(p.195)
- • Significant profit erosion with PAT declining 82% from FY2018 to FY2020(p.195)
- • No dividend history and retained earnings remain minimal(p.155)
- • High operational expense ratio with other expenses at 44.9% of revenue(p.198)
- • No prior capital market experience and unlisted issuer status(p.209)
- • Expand test prep business with new course offerings and centers(p.32)
- • Capitalize on shift from offline to online education(p.36)
- • Growth in online education sector with rising internet penetration(p.38)
- • Expanding test prep market projected to reach USD 11 billion(p.38)
- • Capital expenditure for content development from IPO proceeds(p.23)
- • Geographic expansion into tier 2 and tier 3 cities with high online adoption potential(p.122)
- • Rapidly growing online education market projected to reach USD 1.96 billion by 2021(p.102)
- • Digitalization of banking course content with technology-enabled delivery(p.78)
- • Rising government focus on skill development and digital initiatives(p.103)
- • Growing smartphone and internet penetration enabling mobile-based learning(p.103)
- • Corporate partnership model for customized training and employee skill development(p.122)
- • Large young population (46% aged 15-40) with demand for quality education(p.104)
- • Expansion to additional test prep courses beyond current portfolio(p.194)
- • B2B customized training services for corporate and government clients(p.194)
- • Specialized niche offerings in wealth management and capital markets(p.194)
- • Short-term and test series course offerings for market demand(p.194)
- • Intense competition from established and new market entrants(p.34)
- • Exam pattern changes reduce demand for existing courses(p.33)
- • Free online content availability competes with paid offerings(p.34)
- • Curriculum and examination pattern changes by government/agencies(p.35)
- • Regulatory restrictions on test prep center operations may emerge(p.39)
- • Economic slowdown and inflation increase operating costs(p.41)
- • Disruption from new technologies and digital learning platforms(p.34)
- • Highly fragmented and competitive test preparation market with unorganized players(p.123)
- • Dependence on faculty retention in competitive education sector(p.123)
- • Risk of reduced enrollment and revenue from aggressive competitor pricing(p.123)
- • Evolving competitive exam structures requiring continuous content updates(p.109)
- • Availability of free online content impacting revenue generation(p.109)
- • Regulatory changes in education sector affecting operations and compliance costs(p.125)
- • Significant competition from existing players in edtech sector(p.195)
- • Regulatory compliance risks in education delivery(p.195)
- • Technology obsolescence risk requiring constant adaptation(p.195)
- • Global economic and world economy dependencies(p.195)
- • Mandatory 2-year minimum lock-in on START-UPS platform restricts exit options(p.225)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Chandramouleeswaran Krishnan | Promoter | 62.33% | 45.82% |
| C. Krishnan | Promoter Group | 17.53% | 12.89% |
| K. Palanivelammal | Promoter Group | 6.66% | 4.89% |
| Chandramouleeswaran HUF | Promoter Group | 5.15% | 3.78% |
| Bulls and Bears | Promoter Group | 1.67% | 1.22% |
| Krishnan HUF | Promoter Group | 0.02% | 0.01% |
| Krishnachandran | Promoter Group | 0.01% | 0.01% |
| Chandramouleeswaran Krishnan | Promoter | 62.33% | 45.82% |
| K. Palanivelammal | Promoter Group | 6.66% | 4.89% |
| C. Krishnan | Promoter Group | 17.53% | 12.89% |
| Chandramouleeswaran HUF | Promoter Group | 5.15% | 3.78% |
| Bulls and Bears | Promoter Group | 1.67% | 1.22% |
| Chandramouleeswaran Krishnan | Promoter | 62.33% | — |
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.