Addictive Learning Technology IPO (Lawsikho IPO) envisages to raise Rs 60.16 crores. The issue is a combination of fresh issue of 41.37 lakh shares aggregating to Rs 57.92 crores and offer for sale of 1.6 lakh shares aggregating to Rs 2.24 crores. LawSikho serves in the B2C space in the EdTech market segments. Company is a professional upskilling edtech platform which caters mainly to senior & mid-career professionals and offers a comprehensive range of professional upskilling courses and training programs all as online content.

About Addictive Learning Technology IPO (Lawsikho IPO):

• Company was originally incorporated as a private limited company on September 12, 2017.
• The company is a professional upskilling and career services edtech platform which caters primarily to senior & mid-career professionals, and in some cases to young professionals as well.
• Company offers a comprehensive range of professional upskilling courses and training programs which includes Law, Finance, Compliance, Human Resources, Business Consulting, Artificial Intelligence, Content Writing and Data Science through three distinct brands LawSikho, Skill Arbitrage and Dataisgood.
• These educational offerings are designed to help busy professionals to learn high demand skills, develop a strong demonstrable track record & access international as well as domestic freelance work and remote jobs.
• They also cater to college students looking for advanced skills and recent graduates who are struggling to find jobs.
• One of major focus areas is to offer upskilling courses which enable learners to find career opportunities in the international market remotely. Some of the popular courses cover subjects like US Intellectual Property Law, US Tax Law, US Accounting, Bookkeeping and Corporate Compliances, International Contract Drafting, International Business Law, International Labour Laws, US Technology Law, US Corporate Law, US Real Estate Law etc.
• Some unique points about their courses:
  • The courses consist of recorded videos or textual documents followed by automated quizzes like most other edtech & upskilling courses. Our courses involve cohort based live classes, weekly assignments, simulation exercises, real life situation-based coaching over live calls & one-on-one personalized feedback apart from certification.Provide placement & career support to our learners right from the time when they start learning with us. Career support is embedded throughout the programs rather than at the end of a course.
  • Their team helps learners hands on to identify and to create opportunities, provide guidance & support to develop their professional track record & develop an outreach strategy for them which can help them to take career benefits from newly developed skills.
• The promoters of the company are Mr Ramanuj Mukherjee and Mr Abhyudaya Sunil Agarwal.

Financials: Addictive Learning Technology IPO (Lawsikho IPO)

Anchors: Addictive Learning Technology IPO (Lawsikho IPO)

Addictive Learning Technology IPO (Lawsikho IPO): Salient Points

• The field of online education have been rapidly changing and growing in the recent past.
• Gurugram-based online ed-tech company LawSikho has been ranked as the top legal ed-tech startup in the world as per the latest research from Tracxn, the analytics and market intelligence platform.
• LawSikho’s use of technology in legal education has been widely recognized as innovative and effective.
• Company is engaged in the business of providing professional and legal upskilling courses and career services through their brands namely “LawSikho”, “Skill Arbitrage” and “DataIsGood”. The majority of the revenue from operations is concentrated from the Legal Courses Vertical Operated under the Brand “LawSikho”.

• Company has acquired “DataIsGood Edutech Private Limited” by a share purchase and shareholders’ agreement dated August 26, 2023, and an addendum to the agreement dated December 20, 2023 and contribution from this has not started.
• Company has entered into strategic partnerships with National Skill Development Corporation (NSDC), Texas A&M University, USA, Warsaw University, Poland, Swiss School of Management, Geneva for recognition of their courses at national and international levels. All courses offered under the LawSikho brand are accredited by the National Skill Development Corporation (NSDC), which operates as a public-private partnership under the Ministry of Skill Development and Entrepreneurship of the Government of India. Upon successful course completion, the learners receive a co-branded certificate bearing the names of NSDC and Skill India.
• In addition to this, they also provide LLM degree program with Texas A&M University School of Law and Warsaw University, Poland and MBA- Data Protection and privacy management with Swiss School of Management, Geneva.
• The Net Proceeds are proposed to be utilized in the manner set forth below:

• Company intends to deploy Net Proceeds aggregating to Rs. 300 Lakh for identified acquisition ‘Dataisgood Edutech Private Limited. The Company is engaged in the business of carrying on technical and educational courses in the domain of applied data science, data analysis, data visualisation, machine learning, time-series forecasting, deep learning, recommendation engines, NLP, Chatbots, web scraping, computer vision and artificial intelligence.
• The company is recognized by the name of their brand “LawSikho” rather than Addictive Learning Technology Limited. A strong brand name is a powerful asset, making it easier to attract customers, clients, and partners.
• The company anticipates a total revenue of Rs. 8,085 Lakhs for the fiscal year 2024 and Rs. 13,648 Lakhs for the fiscal year 2025, with enrolments projected to be 14,000 and 19,000, respectively.
• They do not have any physical presence for providing services, instead they are wholly online services aggregators.
• US market penetration of the company for teaching people in USA has been growing.
• Company is a professional upskilling edtech platform which caters to senior & mid-career professionals and offers a comprehensive range of professional upskilling courses and training programs. 70% of the customers are 30 + years. But it has now entered into areas like young people struggling to find a job or for freelancing.
• Over next few years they want to become a services export platform and. right now they facilitate freelancing in the legal domain.
• Due to advance receipt of fees for courses their working capital cycle is quite less and company is debt free.
• Addictive Learning Technology IPO (Lawsikho IPO) is coming at a PE ratio of 90x(fy23 earnings) and 29x (fy24 annualized earnings).
• As per RHP, the company has shown CL Educate and Career Point as their listed peers. They are trading at a P/E of 19.5 and 22.8 respectively.
• I intend to apply in Addictive Learning Technology IPO (Lawsikho IPO) subject to availability of funds. The company looks well set to capture the opportunities in its domain and also selectively reap on opportunities in adjacent areas through diversification and acquisition.
• GMP as reported on social media has been Rs. 165/-.
• Narnolia Financial Services Ltd is the Lead Manager and has a reasonable record. Past issues handled by them include Akanksha Power and Infrastructure Limited, Supreme Power Equipment Limited, WomanCart Limited, Inspire Films, Cellecor Gadgets, Yudiz Solutions Limited, Drone Destination.
• SME IPO are much more risky and volatile than mainboard IPOs.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.