Learnfluence Education, an EdTech company, has filed its Draft Red Herring Prospectus (DRHP) with the Securities Exchange Board of India (SEBI) for its ₹246 crore initial public offering (IPO).
According to the DRHP, the proposed IPO is a combination of a fresh issue of equity shares aggregating up to ₹246 crore and an offer for sale (OFS) of up to 40,00,000 equity shares. Orwel Lionel is the Promoter selling shareholders for the Offer.
The Company proposes to utilize the Net Proceeds of the Fresh Issue towards (i) Capital expenditure towards setting up new physical campuses; (ii) Expenditure towards sales and marketing initiatives (iii) Repayment and/or prepayment, in full or in part, of certain outstanding loans availed (iv) Expenditure towards lease payments of existing identified long-term campuses; and balance for (v) general corporate purposes.
The Company is the parent company of Lakshya, which operates from 15 campuses in 8 cities, namely, Calicut, Ernakulam, Kannur, Trivandrum, Kottayam, Thrissur, Coimbatore and Bengaluru. Learnfluence also uses its own LMS app, called Lakshya IIC, available on the Apple App Store and Google Play Store. According to the CRISIL Report, the company have a market share of 3.26% in the coaching service industry in India.
As per the CRISIL Report, among the peer group, the operating income of the company recorded at a CAGR of 127.44% between Fiscals 2022 and 2024, the third highest in the industry. During the same period, the operating profit before depreciation, interest and tax achieved the highest CAGR of 232.76%, while the PAT recorded the highest CAGR of 184.13% with a PAT margin at 14.72% in Fiscal 2024.
The Company, in consultation with the BRLM, may consider a Pre-IPO Placement of Equity Shares, prior to filing of the Red Herring Prospectus with the RoC.
Saffron Capital Advisors is the sole book-running lead manager (BRLM) to the offer.
