Addictive Learning Technology (Lawsikho) IPO Financial Analysis

Addictive Learning Technology (Lawsikho) established in 2017 is an education tech platform providing specialized courses in law, finance, AI, and other fields. It helps mid to senior professionals worldwide clear international exams, boosting their career prospects is set to launch its IPO on 19 January 2024. Here's a summary of the company's business model, strengths, weaknesses, and growth prospects to assist investors in making informed decisions

Addictive Learning Technology (Lawsikho) IPO Overview

Addictive Learning Technology Ltd, established in 2017, is an educational technology platform focused on upskilling senior and mid-career professionals, as well as catering to the needs of emerging professionals. The platform offers specialized courses in areas such as law, finance, compliance, human resources, business consulting, artificial intelligence, content writing, and data science. Accredited by the National Skill Development Corporation, it owns three proprietary verticals: LawSikho, Skill Arbitrage, and Dataisgood.

Addictive Learning Technology Ltd extends its reach beyond India, aiding professionals in clearing international exams for enhanced job opportunities. The platform offers specialized international bar exam courses, including the Canada Bar Exam and the solicitors qualifying exam (SQE) for England and Wales. Additionally, it supports professionals in qualifying for the California Bar Exam to practice law in the United States.

Addictive Learning Technology IPO Strengths

1. Prioritize building strong connections with students.
2. Maintaining friendly and cooperative relationships with employees and professionals.
3. Bringing industry experts on board as teachers enhances the overall quality of education.

Addictive Learning Technology IPO Risk

1. The company faced losses in past years and might report more in the future.
2. Negative cash flows from investments and financing activities in recent years pose a risk to growth.
3. The main revenue comes from the "LawSikho" Legal Courses Vertical failure to attract clients could impact business.
4. Maintaining pricing, cost control, and expanding student engagement are crucial for sustained profitability.

Addictive Learning Technology IPO Details

Addictive Learning Technology IPO is scheduled from 19 to 23 January 2024. It has a face value of ₹10 per share, and the IPO's price range is ₹130- ₹140 per share

Financial Performance of Lawsikho IPO

LawSikho's Profit After Tax (PAT) is a financial metric that reflects the company's net earnings after deducting all applicable taxes. In 2021, it was at a minimal loss of -0.01 crores, indicating a slightly negative financial outcome. The situation worsened in 2022 with a PAT of -0.49 crores, representing a deeper loss. However, there was a positive turnaround in 2023, as the PAT improved to 2.47 crores

Key Ratios

LawSikho's Return on Equity (ROE) is a financial metric that measures the company's profitability to shareholders' equity. In FY21, the ROE was 50.00% indicating that the company generated a 50.00% return on its equity during that fiscal year. The performance improved in FY22 reaching 119.51% and continued to rise in FY23 reaching 119.90%.

Promoters of Lawsikho IPO

1. Mr Ramanuj Mukherjee.
2. Mr Abhyudaya Sunil Agarwal.

The company is promoted by Ramanuj Mukherjee and Abhyudaya Sunil Agarwal, currently holds a combined promoter stake of 92.27%. Post listing promoter equity holding is expected to be diluted to 67.27%.

Lawsikho Vs. Peers

Addictive Learning Technology has peers in the education sector, like CL Educate Limited and Career Point Limited. EPS is a measure of how profitable a company is for its shareholders. In this comparison, Addictive Learning Technology's EPS is higher at 12.20, indicating better earnings for shareholders compared to CL Educate Limited (4.94) and Career Point Limited (2.41)

Final Words

This article takes a closer look into the upcoming Addictive Learning Technology IPO, scheduled for subscription from 19 January 2024. It suggests that potential investors thoroughly review the company's details, financials, subscription status and GMP. Grey Market Premium indicates the anticipated listing performance, providing valuable insights for investors to make well-informed decisions. On 16 January 2024, Addictive Learning Technology IPO GMP is ₹110 up from the issue price reflecting a 78.57% increase