Wagons Learning has withdrawn its initial public offering, which was scheduled to close on May 6, with the company and the merchant banker Khandwala Securities attributing the development to “prevailing market conditions”.
“Basis the communications received from the merchant banker (Khandwala Securities) and the company (Wagons Learning Ltd) vide their letters dated May 5, 2025, it is hereby notified that the company in consultation with the merchant banker has decided to withdraw the issue due to prevailing market conditions,” said a statement issued by BSE.
Incidentally, this is the first SME IPO to be withdrawn after Trafiksol ITS Technologies whose public issue was launched in September last year. In an order issued in December, the Securities and Exchange Board of India (SEBI) directed Trafiksol ITS Technologies to refund the money to all the IPO investors.
Pune-based Wagons Learning – promoted by Uday Jagannath Shetty and Raviraj Poojary -- was aiming to raise a little over Rs 38 crore by offering shares in a price band of Rs 78 to Rs 82 per share. The offering included an offer for sale portion of 16 lakh shares and a fresh issue of 30.8 lakh shares.
In terms of the objects of the issue, the company was planning to utilise around Rs 7.5 crore for meeting the working capital requirements with Rs 4.5 crore allocated towards prepayment or repayment of all or a portion of certain outstanding borrowings.
As per the draft document of the company, it was formed in 2013, and is engaged in providing corporate training, digital learning and skill development solutions. “We function on a B2B model wherein we provide Training and Certifications, Digital Learning solutions, skill development solutions, trainer outsourcing and payroll management solutions to our clients,” stated the IPO document.
For the year ended March 31, 2024, the company reported a profit after tax (PAT) of Rs 5.6 crore with the net profit pegged at Rs 5.54 crore for the period ended December 31, 2024.
In terms of the risk factors listed in the IPO document, the company, among other things, stated the following: instances of delays in filing returns as required by the Goods & Service Act and The Employees’ Provident Funds and Miscellaneous Provisions Act; conflict of interest may arise out of common business objects with group companies; not obtained any intellectual right for its online courses, software’s, training modules and other training material.
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