Aakash Educational IPO – Review, Allotment Status, Subscription, Price, Date & more

Aakash Educational IPO 18,500,000 Equity shares of Face value of Rs 5 each. The company runs coaching classes and help the students for the preparation of engineering and medical entrance tests.

This company was launched in the year 1988 and since then Aakash Educational Services has over 150 classroom centres, 80 corporate branches, 60 franchise centres and more than 3600 employees across India. This company was launched by JC Chaudhry. This article provides the details about the Aakash Educational IPO size, Aakash Educational IPO object, background of the company, the investors and the financial performance of the company.


Aakash Educational IPO Review & Ratings

IPO Ratings & Review
Criteria Ratings
Industry Sentiments 7.8/10
Industry Ranking 8.7/10
Company Background 7.9/10
Company Reputation 8.6/10
Competitive Edge 7.7/10
Financial Statements 7.8/10
Popularity Index 8.7/10
Promoters Reputation 7.7/10
Retail Appetite 7.9/10
Top Brokers Review 7.9/10
Overall Ratings 7.9/10
Star Ratings ★★★★☆

Summary of Aakash Educational Services IPO

Aakash Educational IPOAakash Educational Services Private Limited help the students for the preparation of engineering and medical entrance tests, is planning for IPO this year. The company is Delhi based and since 2007 this group started conducting National Talent Hunt Exam for IIT entrance tests but before this Aakash Educational Service was mainly into medical entrance test preparation. According to media report, this company has launched a 230-bed Super Speciality Hospital in New Delhi. Their future plan is to launch medical College after the launch of four more Super Speciality hospitals.

The revenue from operations for FY2016, 2017 and 2018 was Rs. 5,824.28 million, Rs. 7,224.28 million and
Rs. 9,733.32 million, respectively. The profit for the year as restated for FY2016, FY2017 and FY2018 were
Rs. 758.74 million, Rs. 635.53 million and Rs. 1,601.84 million, respectively. The profit margin (defined as profit for
the year divided by revenue from operations) for FY2016, FY2017 and FY2018 was 13.03%, 8.80% and 16.46%,
respectively. From FY2016 to FY2018, the revenue from operations and the profit for the year grew at a CAGR
of 29.27% and 45.30%, respectively.

The Promoters are MR. J.C. CHAUDHRY AND MR. AAKASH CHAUDHRY. The lead managers of the IPO are Kotak Mahindra Capital Company Limited, CLSA India Private Limited and Citigroup Global Markets India Private Limited;  and the registrar of the IPO is Link Intime India Private Limited. 


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Aakash Educational IPO Date

The Aakash Education IPO is expected to be in market before the end of this calendar year. The company initiated the talks and the process of draft red herring prospectus in the year 2017, so the IPO is expected to be out soon.

Aakash Educational IPO Subscription

Day / Date QIB NII RII Total Subscription
Day 1
Day 2
Day 3
Day 4
Day 5

The details of shares being subscribed would be updated on a daily basis upon release of the IPO.

Aakash Educational IPO Allotment Status

The details of shares allotted against the subscription would be updated once the allotment process is completed. The details would be accordingly updated.

Aakash Educational IPO Price Band

The price offered under the IPO is generally decided during the book building process. The IPO price has not been released yet. The details would be shortly updated in this section.

Aakash Educational IPO Issue Size

The Aakash Educational IPO size is expected to be close to Rs. 1000 crores. However, this is just an indicative number and the actual number would be updated once the IPO details are finalized by the Company. Please revisit us for the latest updates.

Aakash Educational IPO Equity Share Offerings

The number of shares being sold off by the existing investors is not disclosed yet.


Aakash Educational Services Pvt Ltd – Company Overview

They are the largest player in the coaching industry in India as measured by revenue in FY2017, according to
CRISIL. They provide comprehensive test preparatory services for students preparing for medical and engineering
entrance examinations for Class 11 and Class 12 students, and foundation courses (covering school boards and
junior competitive examinations) for students across Class 8 to Class 10. They provide the services through
classroom-based coaching and digital and distance learning, which supplement the classroom courses and allow
students to engage in self-paced learning. They also offer short-term classroom courses to prepare students for
upcoming examinations.
The first center under the “Aakash” brand was started in 1988, offering test preparatory services for medical
entrance examinations. As of March 31, 2018, they have 170 classroom centers (the “Aakash Centers”) across
103 cities and 23 states / union territories, of which they operate 67 through Franchisee arrangements. As of March
31, 2018, they have a Student Count of 193,313 in the long-term classroom courses (comprising two-year courses,
one-year courses and repeater courses) (“Long-Term Courses”) (including at Franchisee Centers), and a Student
Count of 16,250 in the digital and distance learning courses. the Student Count (excluding those in short-term or
ad-hoc courses) grew at a compound annual growth rate (“CAGR”) of 16.78% from FY2016 to FY2018. As of
March 31, 2018, they employ 1,969 faculty members at the Owned Centers.

They deliver and support the education channels through digital features, including recorded video lectures and
integrated test and assessment via Aakash iTutor which includes online assessment and test series via the Aakash
Test Management System, and live interactive classes via Aakash Live. These programs expand the geographical
reach beyond classrooms by allowing students to learn remotely and yet in an interactive manner. They also use
digital features to enhance the classroom students’ learning experience, for example through the ability to view
video lectures for the lessons they missed and, in foundation classes, through the use of audio-visual technology,
such as interactive whiteboards. As of March 31, 2018, they have a Student Count of 7,701 in Aakash Live and
Aakash iTutor, and from FY2016 to FY2018, the Student Count in these courses grew at a CAGR of 54.94%.

They categorize the programs into three brands:
(i) Aakash Medical: Started in 1988, they now offer test preparatory courses for students in Class 11 and Class 12, and repeater courses for students who have passed Class 12, undertaking entrance examinations for medical undergraduate degree courses, including the National Eligibility Cum Entrance Test (NEET) and AIIMS MBBS entrance examination. According to CRISIL, they are one of the largest players in the medical test preparatory space. They had a Student Count of 84,834, 93,080 and 117,457 students in the long-term classroom medical courses (including at Franchisee Centers) for FY2016, FY2017 and FY2018, respectively. Among the top 100 selections in 2018 NEET, they produced 53 selections from students in the classroom courses, distance and digital learning courses;

(ii) Aakash IIT-JEE: Started in 2007, they now offer test preparatory courses for students in Class 11 and Class 12, and repeater courses for students who have passed Class 12, preparing for state engineering Common Entrance Tests (CETs) and for Joint Entrance Examinations (JEE) conducted at the state and central levels, including the JEE Main and Advanced. They had a Student Count of 31,479, 27,794 and 32,798 students in the long-term engineering courses (including at Franchisee Centers) for FY2016, FY2017 and FY2018, respectively. Among the top 1,000 selections in JEE Advanced in FY2018, they produced 37 selections from students in the classroom courses, distance and digital learning courses;

(iii) Aakash Foundations: Started in 2009, they now offer test preparatory courses to students in Class 9 to Class 10 for subjects, being Science, Mathematics, English and Social Sciences. For Class 8 students, they only offer test preparatory courses via Aakash Live. In addition, they provide training to these students for central and state board examinations, and for junior competitive scholarship tests and merit tests, such as the Olympiads and National Talent Search Examination (“NTSE”). They had a Student Count of 25,899, 33,718 and 43,058 students in the foundation courses (including at Franchisee Centers) for FY2016, FY2017 and FY2018, respectively.

Key members of Aakash Educational Services:

  • Ms. Kamla Chaudhry
  • Dr. Aashish Chaudhry
  • Dr. Meinal Chaudhry
  • Ms. Neetu Chaudhry
  • Mr. Jai Dayal Chaudhry

Competitive Strengths of Aakash Educational Services

  • Market leading position with strong brand recognition and presence across India
  • Diversified course offerings and delivery channels
  • Strong digital offerings leveraging on technology to expand our target audience and enhance quality of
    offerings
  • Standardized content and coaching methods and qualified faculty deliver strong selection track record
  • Scaleable and efficient business model for a growing industry
  • Strong, experienced, diverse and professional management team

Business strategy of Aakash Educational Services

  • Expand network of centers and increase Student Count through marketing
  • Increase Student Count in engineering courses
  • Enhance our digital offerings and digital brand
  • Improve our back-end information technology infrastructure

Aakash Educational IPO – Issue Object

The objects of the Offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and for the sale of 18,500,000 Equity Shares by the Selling Shareholders. Company expects that listing of the Equity Shares will enhance the visibility and brand and provide liquidity to its existing Shareholders. Listing will also provide a public market for the Equity Shares in India. Company will not receive any proceeds from the Offer. All proceeds from the Offer will go to the Selling Shareholders for the Equity Shares offered by them in the Offer.


Aakash Educational Services – Financial Statements

A summary of the financial position of the company is presented below

Amount (in INR & Million)
31-Mar-18 31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14
Total Assets 4,540.75 3,497.90 3,325.11 2,947.44 2,516.30
Total Revenue 9,811.34 7,296.16 5,868.56 4,668.75 3,298.81
Total Expense 7,384.77 6,238.72 4,701.48 4,134.62 2,729.95
Profit After Tax 1,601.84 635.53 758.74 358.85 379.34

Earnings per Equity Share (INR Millions)

31-Dec-18 31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14
Basic  24.26 9.63 11.5 5.44 5.75
Diluted  24.26 9.63 11.5 5.44 5.75

Aakash Educational Services Promoters

  • MR. J.C. CHAUDHRY
  • MR. AAKASH CHAUDHRY

Promoter Interest in the company.

The Promoters are interested in the Company to the extent (i) that they have promoted the Company, (ii) of the Equity Shares held by them or their relatives in the Company, and dividend payable, if any, and other distributions in respect of the Equity Shares held by them or their relatives, (iii) in case of Mr. J.C. Chaudhry, of being the Chairman cum Managing Director and the compensation and perquisites payable in such capacity, (iv) in case of Mr. Aakash Chaudhry, of being the Chief Executive Officer & Whole-time Director of the Company and the compensation and perquisites payable in such capacity, (v) any transactions or business arrangements undertaken by the Company with the Promoters, or their relatives or entities in which the Promoters hold shares or entities in which the Promoters are members of the board of directors or firms in which relatives of the Promoters hold interest.

Companies with which the Promoters have disassociated in the Last Three Years
Neither of the Promoters has disassociated himself from any company during the three years immediately preceding
the date of filing this Draft Red Herring Prospectus.


Aakash Educational IPO – Offer Details or Issue Details

Offer 18,500,000 Equity Shares aggregating to Rs [●] million
Of which
Employee Reservation Portion Up to 100,000 Equity Shares
Accordingly,
The Net Offer Up to X Equity Shares
Of which:
QIB Category At least [●] Equity Shares
Of which:
 Anchor Investor Portion Up to [●] Equity Shares
Balance available for allocation to QIBs other than Anchor Investors (assuming Anchor Investor Portion is fully subscribed) [●] Equity Shares
Of which:
– Available for allocation to Mutual Funds only (5% of the QIB Category (excluding the Anchor Investor Portion)) Up to [●] Equity Shares
– Balance of QIB Category for all QIBs including Mutual Funds [●] Equity Shares
Non-Institutional Category Not less than [●] Equity Shares
Retail Category Not less than [●] Equity Shares
Equity Shares outstanding prior to the offer 66,654,612 Equity Shares
Equity Shares outstanding after the Offer 66,654,612 Equity Shares

Aakash Education IPO Issue Object

Will be declared and updated soon.


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Aakash Education IPO – Basis of the Offer Price

The IPO offer price is determined by the company and the lead managers by market evaluation and book building process. The price is also influenced by various qualitative and quantitative factors. Some such factors are discussed below.

The qualitative factors relevant to decide the issue price:

  • market leading position with strong brand recognition and presence across India;
  • diversified course offerings and delivery channels;
  • strong digital offerings leveraging on technology to expand our target audience and enhance
    quality of offerings;
  • standardized content and coaching methods and qualified faculty deliver strong selection track
    record; and
  • scalable and efficient business model for a growing industry Strong, experienced, diverse and
    professional management team.

The quantitative factors relevant for the issue price are:

Basic & Diluted EPS RONW (%) NAV (Rs.)
31-Mar-18 24.26 272.13 12.42
31-Mar-17 9.63 425.44
31-Mar-16 11.5 88.49
  • Competitive Peers
Particulars Face Value  (in Rs.) EPS (In Rs.) P/E Ratio RONW (%)  NAV (In Rs.)
Aakash Educational 10 24.26 NA 272.13% 8.83
PEER
MT Educare Limited 10 -32.71 NA -64.34 28.54

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Aakash Education IPO Lead Managers

Lead Managers
CLSA India Private Limited

Citigroup Global Markets India Private Limited

Kotak Mahindra Capital Company Limited


Aakash Education IPO Registrar to offer

Registrar to offer
Link Intime India Private Limited
C-101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli (West)
Mumbai 400 083, Maharashtra, India
Tel: +91 22 4918 6200, Fax: +91 22 4918 6195
E-mail: [email protected]
Website: www.linkintime.co.in
Investor Grievance ID: [email protected]
Contact Person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058

Aakash Education IPO Review by Top 10 Stock Brokers

Top Stock Brokers Review Company Reputation Competitive Edge Financial Statement Popularity Index Promoters Reputation
Angel Broking 7.7/10 7.7/10 7.8/10 7.3/10 7.7/10
Sharekhan 7.4/10 7.4/10 7.5/10 7.7/10 7.8/10
Kotak Securities 7.7/10 7.4/10 7.3/10 7.8/10 7.5/10
ICICI Direct 7.8/10 7.7/10 7.5/10 7.5/10 7.7/10
IIFL 7.5/10 7.8/10 7.3/10 7.7/10 7.5/10
Edelweiss 7.3/10 7.5/10 7.7/10 7.3/10 7.3/10
Zerodha 7.7/10 7.3/10 7.7/10 7.5/10 7.7/10
5Paisa 7.9/10 7.5/10 7.8/10 7.3/10 7.3/10
Karvy 7.7/10 7.3/10 7.5/10 7.5/10 7.7/10
Motilal Oswal 7.9/10 7.7/10 7.3/10 7.3/10 7.7/10

The ratings would be updated once the financials and the other details of the IPO are released.


Aakash Education IPO Grey Market Premium

Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 


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Aakash Educational IPO News

News 1 : Aakash Education plans to raise Rs 1,000 crore via IPO

News 2 : (Download Prospectus)


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