The education sector presents significant investment opportunities through notable listings like Shanti Educational Initiatives Ltd, Vantage Knowledge Academy Ltd, and Veranda Learning Solutions Ltd, offering exposure to India’s growing educational landscape.
Content:
- Overview of the Education IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in Education Sector IPOs
- Disadvantages of Investing in Education Sector IPOs
- Role of Education Industry in the economy
- How to invest in Education IPOs?
- Future outlook of Education IPOs in India
- Education IPOs in India – FAQ
Overview of the Education IPOs in India
The education sector features prominent listings including Shanti Educational Initiatives Ltd and Vantage Knowledge Academy Ltd, demonstrating robust potential in educational services and learning solutions nationwide.
These offerings enable investors to participate in sector growth while benefiting from increasing demand for quality education, expanding learning platforms, and growing market penetration across various segments.
IPO Fundamental Analysis
Shanti Educational Initiatives Ltd
Shanti Educational Initiatives Ltd has demonstrated steady progress in its financial performance over FY24, emphasizing improvements in revenue, profitability, and financial stability. This growth reflects the company’s resilience in navigating challenges and driving operational efficiency in a competitive educational landscape.
Revenue Trend: Revenue grew to ₹13.66 crores in FY24 from ₹10.99 crores in FY23, reflecting a 24.28% increase. Operating profit also improved, rising to ₹1.21 crores from ₹0.41 crores, with an OPM increase to 8.86%.
Equity and Liabilities: Equity capital remained constant at ₹16.10 crores in FY24. Reserves grew to ₹47.15 crores from ₹44.21 crores, while total liabilities increased to ₹68.00 crores from ₹66.38 crores in FY23.
Profitability: Net profit declined slightly to ₹3.18 crores in FY24 from ₹3.37 crores in FY23. However, other income remained robust at ₹3.78 crores, showcasing consistent additional revenue streams.
Earnings per Share (EPS): EPS remained stable at ₹0.20 in FY24, reflecting consistent shareholder returns despite a slight dip in net profit.
Return on Net Worth (RoNW): RoNW improved to 5% in FY24 from 4% in FY23, indicating better utilization of shareholders’ equity in driving returns.
Financial Position: Total assets increased to ₹68.00 crores in FY24 from ₹66.38 crores in FY23, driven by growth in other assets to ₹40.26 crores and consistent investment levels at ₹9.26 crores.
Vantage Knowledge Academy Ltd
Vantage Knowledge Academy Ltd highlights a transformative journey, showing significant growth in revenue and profitability in FY24 compared to FY23. With robust sales performance, increased equity, and improved financial metrics, the company has strengthened its financial position and shareholder returns.
Revenue Trend: Revenue surged to ₹4.32 crores in FY24 from ₹2.04 crores in FY23, a 111.76% increase. Expenses rose to ₹2.80 crores from ₹0.71 crores, leading to higher operating profits of ₹1.52 crores.
Equity and Liabilities: Equity capital rose to ₹10.38 crores in FY24 from ₹3.36 crores in FY23. Total liabilities increased to ₹15.44 crores from ₹5.91 crores, reflecting growth in borrowings and other liabilities.
Profitability: Operating profit margin improved to 35.19% in FY24 from 65.20% in FY23. Profit before tax increased to ₹1.92 crores compared to ₹1.40 crores, reflecting consistent profitability growth.
Earnings per Share (EPS): EPS stood at ₹0.13 in FY24, reflecting a positive shift from ₹0.30 in FY23, driven by improved net profit and consistent equity base growth.
Return on Net Worth (RoNW): RoNW decreased slightly to 15% in FY24 from 16% in FY23 due to increased reserves and a higher capital base.
Financial Position: Total assets rose to ₹15.44 crores in FY24 from ₹5.91 crores in FY23, with significant increases in fixed assets (₹0.36 crores) and other assets (₹15.02 crores).
Veranda Learning Solutions Ltd
Veranda Learning Solutions Ltd demonstrates substantial growth in FY24, with improvements in revenue and assets but facing challenges in profitability and shareholder returns. The financial data reflects its evolving business structure and operational scale expansion compared to FY23.
Revenue Trend: Revenue grew sharply to ₹361.73 crores in FY24 from ₹161.36 crores in FY23, a 124% increase. Expenses, however, increased to ₹307.73 crores from ₹233.59 crores, impacting overall margins.
Equity and Liabilities: Equity capital rose to ₹69.20 crores in FY24 from ₹61.57 crores in FY23. Total liabilities surged to ₹1,633 crores from ₹891.69 crores, reflecting higher current and non-current liabilities.
Profitability: Operating profit recovered to ₹54 crores in FY24 from a loss of ₹72.24 crores in FY23. OPM improved to 14.59% from -36.13%, showcasing better operational efficiency despite challenges.
Earnings per Share (EPS): EPS improved marginally to -₹11.52 in FY24 from -₹12.87 in FY23, signaling a slight recovery in shareholder returns despite remaining negative.
Return on Net Worth (RoNW): Net profit remained negative at -₹76.11 crores in FY24 compared to -₹79.21 crores in FY23, affecting RoNW due to persistent losses and rising liabilities.
Financial Position: Total assets grew significantly to ₹1,633 crores in FY24 from ₹891.69 crores in FY23, driven by an increase in non-current assets to ₹1,472 crores. Current assets also increased to ₹161.08 crores.
IPO Financial Analysis
Shanti Educational Initiatives Ltd
| Mar-24 | Mar-23 | Mar-22 | |
| Sales | 13.66 | 10.99 | 3.93 |
| Expenses | 12.45 | 10.58 | 5.37 |
| Operating Profit | 1.21 | 0.41 | -1.44 |
| OPM % | 0.09 | 0.04 | -0.37 |
| Other Income | 3.78 | 4.83 | 3.54 |
| Interest | 0.31 | 0.30 | 0.56 |
| Depreciation | 0.26 | 0.22 | 0.74 |
| Profit before tax | 4.42 | 4.72 | 0.80 |
| Tax % | 0.28 | 0.29 | 0.00 |
| Net Profit | 3.18 | 3.37 | 0.80 |
| EPS in Rs | 0.20 | 0.21 | 0.05 |
Vantage Knowledge Academy Ltd
| Mar-24 | Mar-23 | Mar-22 | |
| Sales | 4.32 | 2.04 | 0.37 |
| Expenses | 2.80 | 0.71 | 0.31 |
| Operating Profit | 1.52 | 1.33 | 0.06 |
| OPM % | 0.35 | 0.65 | 0.16 |
| Other Income | 0.41 | 0.08 | 0.28 |
| Interest | 0.00 | 0.00 | 0.03 |
| Depreciation | 0.01 | 0.01 | 0.00 |
| Profit before tax | 1.92 | 1.40 | 0.31 |
| Tax % | 0.28 | 0.28 | 0.29 |
| Net Profit | 1.39 | 1.01 | 0.22 |
| EPS in Rs | 0.13 | 0.30 | 0.07 |
Veranda Learning Solutions Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales Insight-icon | 362 | 161 | 75 |
| Expenses | 308 | 234 | 115 |
| Operating Profit | 54 | -72 | -40 |
| OPM % | 14.59 | -36.13 | -52.39 |
| Other Income | 8.29 | 38.56 | 0.55 |
| EBITDA | 62 | -34 | -39 |
| Interest | 78.17 | 10.30 | 8 |
| Depreciation | ₹ 65 | ₹ 45 | ₹ 14 |
| Profit Before Tax | -81 | -89 | -61 |
| Tax % | 6.33 | 11.43 | 4.43 |
| Net Profit | -76 | -79.21 | -58 |
| EPS | -11.52 | -12.87 | -14.21 |
About the Company
Shanti Educational Initiatives Ltd
Shanti Educational Initiatives Ltd focuses on delivering innovative education solutions through its network of schools and institutions. It emphasizes holistic learning and personalized teaching methodologies to nurture academic and extracurricular development in students.
The company leverages modern technology and experienced educators to provide quality education. Its vision includes shaping young minds with strong values and skills, ensuring a future-ready generation capable of excelling in diverse fields.
Vantage Knowledge Academy Ltd
Vantage Knowledge Academy Ltd specializes in skill-based training and education services, offering industry-relevant programs for professional growth. It operates through various platforms, addressing the evolving needs of students and working professionals.
The company emphasizes practical knowledge and certifications, collaborating with industry experts to ensure employability. Its focus remains on bridging the gap between academic learning and market requirements through innovative teaching approaches.
Veranda Learning Solutions Ltd
Veranda Learning Solutions Ltd provides comprehensive online and offline learning solutions, catering to competitive exam preparation and professional development. The company is known for its interactive and accessible educational content.
It aims to empower learners with structured programs delivered through advanced technology. Veranda focuses on creating a robust learning ecosystem, ensuring inclusivity and quality across diverse educational needs and segments.
Advantages of Investing in Education Sector IPOs
The main advantages of Investing in Education Sector IPOs include exposure to India’s growing education market, stable revenue streams, technological integration opportunities, and strategic market positioning through established companies like Veranda Learning Solutions Ltd.
1. Growth Potential: The sector benefits from increasing education spending, rising literacy goals, digital learning adoption, professional development demands, and continuous skill enhancement requirements.
2. Recurring Revenue: Educational institutions generate stable income through consistent enrollment patterns, long-term student relationships, and diversified course offerings across multiple segments.
3. Technology Integration: Modern learning platforms, digital content delivery, online assessment systems, and interactive tools enhance service quality and operational efficiency.
Disadvantages of Investing in Education Sector IPOs
The main challenges of Investing in Education Sector IPOs include regulatory compliance requirements, infrastructure costs, quality maintenance demands, and competitive pressures, as demonstrated in the performance metrics of companies like Shanti Educational Initiatives Ltd.
1. Regulatory Framework: Companies face strict educational norms, accreditation requirements, quality standards compliance, government policies, and continuous monitoring affecting operational flexibility and costs.
2. Infrastructure Investments: Significant capital requirements for facilities, technology platforms, learning resources, qualified faculty, and continuous upgradation impact financial planning and returns.
3. Market Competition: Intense rivalry from established institutions, online platforms, and new entrants requires continuous investment in quality improvement and brand building.
Role of Education Industry in the economy
The education sector drives economic advancement through skill development, employment generation, knowledge creation, and support to India’s growing professional workforce requirements nationwide.
The industry promotes human capital development, enhances workforce capabilities, creates teaching opportunities, and strengthens India’s position in the global knowledge economy.
How to invest in Education IPOs?
Start by opening a demat account with Alice Blue, complete comprehensive KYC requirements, and thoroughly research upcoming education sector IPOs through detailed fundamental analysis.
Monitor SEBI announcements, company prospectuses, market conditions, and sector trends, and maintain required funds for a timely subscription while following systematic investment approaches.
Future outlook of Education IPOs in India
The education sector demonstrates promising growth potential with increasing demand for quality education, digital learning adoption, professional development needs, and expanding market opportunities.
Industry modernization, technological integration, and market expansion initiatives indicate positive prospects for future IPOs, supported by growing educational requirements nationwide.
Education IPOs in India – FAQ
Education sector IPOs represent the first public offerings from educational institutions and learning solutions providers, like Shanti Educational Initiatives Ltd and Vantage Knowledge Academy Ltd.
Major listings include Shanti Educational Initiatives Ltd, Vantage Knowledge Academy Ltd, and Veranda Learning Solutions Ltd, offering investors exposure to educational services.
Education sector IPOs provide strategic investment opportunities in India’s knowledge economy, with companies like Shanti Educational Initiatives Ltd demonstrating potential for sustainable growth.
Shanti Educational Initiatives Ltd marks a significant milestone as a prominent education sector public offering, showcasing strong market interest and setting industry valuation benchmarks.
Begin by opening a trading account through Alice Blue, completing comprehensive KYC requirements, analyzing market conditions, studying company fundamentals, and maintaining adequate subscription funds.
Education sector IPOs offer substantial long-term growth potential, supported by India’s growing education needs, digital transformation, and increasing professional development requirements.
Historical performance indicates strong profitability potential, though returns depend on regulatory compliance, infrastructure investments, quality maintenance, and company-specific operational efficiencies.
Market observers anticipate new education sector IPOs, following successful listings like Veranda Learning Solutions Ltd, driven by growing demand for quality education.
Access comprehensive research and analysis through Alice Blue’s dedicated research portal, along with additional information from financial websites, SEBI documentation, and industry reports.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
