Sodhani Academy of Fintech Enablers IPO : has opened its Initial Public Offering, whose subscriptions were opened on September 12, 2024, and the last date for subscription is September 17, 2024. It was in heavy demand within the investor circles and thus emerged as one of the most discussed market events in the recent times. Here, we will take a closer look at the status of subscription, GMP, important dates, and investment requirements and the objectives behind this IPO.
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Sodhani Academy of Fintech Enablers IPO :
Subscription Status Day 2: Public Issue Absorbs Subscriptions Worth 9.90 times, Showing Fantastic Interest on Day – A Good Response by Retail Investors – Get the Complete Details of Day 2 Subscription Status Here.
Retail category: Under this category, retail witnessed a massive demand due to the IPO getting subscribed 16.32 times. It means that for every share available under the retail category, there were more than 16 buyers queuing up, which reflects a higher interest from small investors.
Non-Institutional Investors Category: The non-institutional investor category-HNIs or High Net-worth Individuals-subscribed 3.48 times. Here, demand was not as high as in the retail segment, but still, it reflected sound interest.
Qualified Institutional Buyers (QIB) Category: As on Day 2, there was no subscription in QIB. It could be that the institutional investors are taking things slow and steady or waiting for the last couple of days to invest.
Good demand from both the retail and HNI category reflects the positive sentiment of the business model of Sodhani Academy and the growth story.
Sodhani Academy IPO: Important Dates and Timeline
These are the dates to remember for those thinking about investing in the Sodhani Academy of Fintech Enablers IPO:
12th September 2024- Date When IPO Opens
17th September 2024- Date When IPO Closes
18th September 2024- Date of Allocation Status in the Bids Submitted by Investors.
Refund and De-Grossing of Amount: Refunds shall be processed from September 19, 2024, in respect of failed applicants.
Listing Date: The equity shares of Sodhani Academy of Fintech Enablers are expected to be listed on the BSE SME exchange on September 20, 2024
Sodhani Academy IPO: Price and Lot Size
The IPO has been priced at ₹40 per share from Sodhani Academy of Fintech Enablers; it is well within the affordable ballpark for retail investors, though investment requirements are a little on the higher side due to minimum lot size.
Lot Size: 3,000 shares application for a minimum.
Retail Investors: Retail investors will need to come up with a minimum investment of ₹120,000 for participation in the IPO. While being at a slightly higher entry point compared with most other IPOs, it is said that many retail investors are willing to commit this amount, given the robust subscription figures.
HNI Investors: High Net-worth Investors (HNIs) have to apply for a minimum of two lots (or 6,000 shares), requiring a minimum investment of ₹240,000. HNIs have large amounts of capital and desire substantial returns from the investments; therefore, this segment is well monitored.
Sodhani Academy IPO: Objectives of the Issue
Sodhani Academy of Fintech Enablers intends to mop up ₹6.12 crores from this IPO. Money raised this way will be used for a variety of purposes:
Offer for Sale (OFS): Of the total IPO size, 5.6 lakh shares are part of an offer for sale. In OFS, existing shareholders or promoters sell off their shares to the public, and the company doesn’t raise a single rupee from that part of the IPO.
Fresh Share Issue: The company is issuing 9.7 lakh fresh shares, which will generate ₹3.88 crores. The funds raised from this segment are proposed to be invested in growth and expansion activities, such as:
Content Development for Course Materials: Sodhani Academy is into Fin-tech education, and the company intends to use the proceeds to develop fresh high-quality content for its training programs.
Building content studios and offline training infrastructure: The company would invest in physical training spaces and content creation studios as part of the quest to give education both online and offline.
Procurement of IT hardware and software: The funds raised will be used in acquiring technology infrastructure, that is, equipment and other software, to improvise the educational offerings and the backend systems of the company.
Enhancing Brand Visibility and Awareness: A percentage of the proceeds will go towards publicity and promotional programs which enhance the reach of the brand and attract more students.
Designing LMS Applications: To make digital education delivery streamlined and user-friendly for the company, it shall design and also upgrade its LMS applications.
General Corporate Expenses: The net proceeds would be used for general corporate purposes, which would include working capital needs, general day-to-day working expenses, or other uncharacterised business purposes.
Sodhani Academy of Fintech Enablers IPO: Grey Market Premium(GMP)
As per the reports available on Investorgain.com, Sodhani Academy of Fintech Enablers IPO GMP was at ₹10 on the second day.
Grey Market Premium is the price of shares in the unorganized market until the official listing in the stock exchange. Thus GMP is positive here where investors are paying extra price for the shares than the issue price of IPO because of demand.
Issue Price : ₹ 40 per share
Grey Market Premium: ₹ 10 per share
Expected Listing Price As per the present GMP, the expected listing price for the equity shares of Sodhani Academy would be ₹50 per share. That is 25% above the issue price that may reflect well on market sentiments and short-term gains for potential sellers of shares who might look to sell once listed.
A Peek into Sodhani Academy of Fintech Enablers
Sodhani Academy is an ed-tech company that focuses on fintech education. The mission here is aimed at making the best of what the students and businesses could bring out in a world ever changing with financial technology. The company therefore offers courses that help individuals and businesses catch up with this fast-changing discipline. The curriculum and other educational resources adopted by the company are well relevant to current business.
Another emerging need the company identifies is through offline training, which explains its investment in the content studios as well as physical infrastructure. This dual approach of both online and offline courses is towards better catering to a larger audience, ranging from urban professionals to smaller towns.
Sodhani Academy is well placed in a niche yet growing market—fintech education—that will find significant demand in years to come as financial services increasingly digitize and automation becomes the norm.
Conclusion: Should You Invest in the Sodhani Academy IPO?
The IPO of Sodhani Academy of Fintech Enablers had a Grey Market Premium of ₹10 with 25% listed gain expectations. So, retail and HNI investors always welcome this sign of interest.
For the long-term investor, this is an interesting opportunity within such a county as India, where digital finance is expanding rapidly. The plans for Sodhani Academy to add more infrastructure and improve learning systems with the organization demonstrate that the company is serious about scaling their operations.
The risks, though, are also there- for instance, there has been no institutional investor participation in this IPO so far and also the high minimum investment requirement for retail investors.
The IPO is presenting an optimal mix of opportunity versus risk. It would be quite appealing to investors looking for exposure to the fintech education sector, especially those who are optimistic about its future growth.