Arihant Institute Limited is all set to get listed on the stock exchange. The Arihant Institute IPO is releasing on May 23rd 2018 and its issue size is Rs.750 lakhs. The company has also reserved certain shares for market makers. Lets read this article to know more about the company background, the promoters, the IPO object, IPO offer, IPO pricing and the financial figures of the company for past 5 years.

 


Arihant Institute IPO Review & Ratings

Arihant Institute IPO Ratings & Review
CriteriaRatings
Industry Sentiments5.8/10
Industry Ranking5.7/10
Company Background5.9/10
Company Reputation5.7/10
Competitive Edge5.7/10
Financial Statements5.8/10
Popularity Index5.6/10
Promoters Reputation5.7/10
Retail Appetite5.8/10
Top Brokers Review5.8/10
Overall Ratings5.7/10
Star Ratings★★★☆☆

Summary of Arihant Institute IPO

Arihant Institute IPOArihant Institute IPO carries 25 lac equity shares of Rs. 10 each and are being offered to the public at Rs. 30 per share which means premium of Rs. 20 per share.

The company has also reserved 1.32 lac equity shares for the market makers and hence the public will have a net offering of 23.68 lacs equity shares. Arihant Institute was incorporated by their Promoters- Mr. Sandip Vinodray Kamdar , Mr. Vinodray Keshavlal Kamdar, Mrs. Madhuben Vinodray Kamdar and Mrs. Anjali Sandipbhai Kamdar with an aim of running Coaching Institute for Professional courses.

Arihant Institute has appointed Monarch Networth Capital as their lead managers and Karvy Computershare is the registrar to the offer.


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    Arihant Institute IPO Date

    The IPO for Arihant Institute opens on 23rd May 2018 & closes on 28th May 2018.

    Arihant Institute IPO Subscription

     Subscription
    Day 1 – 23 May’18 X
    Day 2  – 24 May’18 X
    Day 3  – 25 May’18 X
    Day 4  – 26 May’18 X
    Day 5  – 27 May’18 X
    Day 6  – 28 May’18 X

    The number of shares subscribed by the public will be updated herein on a daily basis.

    Arihant Institute IPO Allotment Status

    Upon completion of the subscription process, the company will start allotting the shares. Once the company is done with the allotment, the details will be updated herein.

    Arihant Institute IPO Price Band

    The Arihant Institute IPO is priced at Rs.30 per share which includes a premium of Rs.20 per share.

    Arihant Institute IPO Issue Size

    The company expects to collect funds as much as Rs.750 lakhs from this IPO. Out of this, certain portion is expected from the market makers.

    Arihant Institute IPO Equity Share Offerings

    The number of shares offered to the public is 23.68 lakhs and apart from this, 1.32 lakhs shares have been reserved for the market makers. Thus, the total offer is of 25 lakhs shares. The total offer constitutes 26.58% of the post issue capital of the company.



    Arihant Institute Limited- Company Overview

    Company was incorporated as Arihant Institute Private Limited on 30th March, 2007 and got converted into a public company in 2018.

    Arihant Institute Limited is engaged in providing coaching & educational guidance for students appearing for professional course – Chartered Accountant, Company Secretary and CMA. We provides the coaching and guidance from Entry level test exam till final exam and covers all the subjects in depth with test series to improve their
    confidence and overall result.

    Arihant Institute Limited operates the educational program and coaching under the Brand Name ―Arihant Institute since inception. With dedicated professors and trained staff, the company has given education to more than 10000 students appeared for professional & Graduates exam.

    Their student strength has improved and with dedicated efforts of the promoters, from the institute, there were 205 National Rankers in CA Inters and Final Courses, 2000+ Chartered Accountant and 175+ Company Secretary.

    The company establishes a good relationship with their students by providing good quality education, which will surely go a long way and benefit the company. The company is backed by a team of highly educated and experienced professionals who have an affinity for providing better education to the students. The company‘s team has been a major strength as it understands the varied needs students and works accordingly. From providing study material to teaching students in class Arihant Institutes ensures quality of the same.

    Key members of Arihant Institute are:

    • Vinodbhai Chimanlal Shah, Chairman and Additional Non-Executive Director
    • Rushiraj Zaveribhai Patel, CFO and Additional Executive Director
    • Kashyap Trivedi, CEO & Whole-time Director
    • Jigar Umeshbhai Shah, Non-Executive Director

    Competitive Strengths of Arihant Institute

    • Experienced promoters and Management Expertise
    • Quality Assurance
    • Unique Brand Positioning
    • Result oriented methods of coaching
    • Pioneer in coaching Industry
    • Team of professional and experienced coaching staff

    Business strategies of Arihant Institute

    • Evaluating opportunities for strategic alliances
    • Expansion into new business segments – Arihant Publications, Training and Placement Academy
    • More Diverse Courses offerings for Coaching and Guidance
    • Geographical Expansions
    • More Vocational and Training Courses offerings
    • Technology and Servers

    Arihant Institute – Financial Statements

    While evaluating any company for investment purposes, its financial statements are the most critical thing – let us look into the key financial indicators to evaluate this company:

    Assets of the Company

    Assets (in INR & Lakhs)
     Mar’17Mar’16Mar’15Mar’14Mar’13
    Non-Current Asset309328352261194
    Current Asset278247377405403
    Total Asset587575730667597

    Revenue & PAT of the Company

    Revenue & Profits (in INR & Lakhs)
     Mar’17Mar’16Mar’15Mar’14Mar’13
    Total Revenue169167386610864
    Profit after Tax (PAT)11-1454-11516

    Earnings per Equity Share

    Earning per Equity Share (in INR)
     Mar’17Mar’16Mar’15Mar’14Mar’13
    Basic0.77-14.450.38NANA
    Diluted0.77-14.450.38NANA

    As seen from the table above, Revenues have grown from Rs. 167.10 Lakhs in fiscal 2016 to Rs. 169.20 Lakhs in fiscal 2017. The net Loss was Rs. 144.52 Lakhs in fiscal 2016 and earned net profit Rs. 11.17 Lakhs in fiscal 2017. The Revenue for period ended January 31, 2018 is Rs. 114.12 Lakhs and net profit after tax is Rs. 12.30 Lakhs.


    Arihant Institute Limited Promoters

    The company has been promoted by :

    • Sandip Vinodray Kamdar
    • Vinodray Keshavlal Kamdar
    • Anjali Sandipbhai Kamdar
    • Madhuben Vinodray Kamdar

    Promoter Interest in the company.

    The company’s promoters jointly hold Equity Shares aggregating to 73.51 % of pre-issue Equity Share Capital in the
    Company and they are interested to the extent that they have promoted the Company and to the extent of their
    shareholding in the Company & dividend payable thereon, if any.

    The Promoters, Mr. Sandip Vinodray Kamdar , Mr. Vinodray Keshavlal Kamdar, Mrs. Madhuben Vinodray Kamdar and Mrs. Anjali Sandipbhai Kamdar are also the Managing Director and Executive Directors, respectively of the Company who may be deemed to be interested to the extent of remuneration, as per the terms of his appointment and reimbursement of expenses payable to them or sitting fees paid to them.

    The Promoters may also be interested to the extent of unsecured loans granted to the  Company. Further Promoters may also interested to the extent of loans, if any, taken by them or their relatives or
    taken by the companies/ firms in which they are interested as Directors/Members/Partners.

    Promoter Interest in property of the company

    Promoters do not have any interest in any property acquired two years prior to the date of final Prospectus issued by the company.


    Arihant Institute IPO Offer Details or Issue Details

    Equity Shares Issued
    Public Issue of Equity Shares by our Company
    25,00,000 Equity Shares of Face Value of Rs. 10/- each for Cash at a Price of Rs. 30/- Per Equity Share (Including a Share Premium of Rs.20/- per Equity Share) aggregating to Rs.750 Lakhs
    of which
    Issue Reserved for the Market Makers1,32,000 Equity Shares of Rs.10/- each for cash at a price of Rs. 30 per share aggregating Rs. 39.60 Lakhs
    Net Issue to the Public23,68,000 Equity Shares of Rs.10/- each for cash at a price of Rs.30/- per share aggregating Rs.710.40 Lakhs
    of which
    11,84,000Equity Shares of Rs.10/- each for cash at a price of Rs.30/-per share ( including a premium of Rs.20/- per Equity Share) will be available for allocation for allotment to Retail Individual Investors of up to Rs.2.00 Lakhs
    11,84,000Equity Shares of Rs.10/- each for cash at a price of Rs.30/- per share ( including a premium of Rs.20/-per Equity Share) will be available for allocation for allotment to Other Investors of above Rs.2.00 Lakhs
    Equity Shares outstanding prior to the Issue69,05,006 Equity Shares of face value of Rs.10/- each
    Equity Shares outstanding after the Issue94,05,006 Equity Shares of face value of Rs.10/- each

    Arihant Institute IPO Issue Object

    • Training Centre Expansion
    • Technical Infrastructure -Servers & Studio, Portal and Content Development
    • Branding and Marketing
    • Corporate Office Restructuring
    • General Corporate purpose
    • Issue expenses

     

    Arihant Institute IPO – Basis of the Offer Price

    The offer price for this IPO has been fixed at Rs. 30 per share which is 3 times the face value of the equity shares being issued.

    The qualitative factors relevant to decide the issue price:

    • Experienced promoters and Management Expertise
    • Quality projects and committed operations
    • Independent Execution capabilities
    • Networking strength

    The quantitative factors relevant for the issue price are:

    • Earning per share – The EPS earned by the company for FY 16-17 is Rs. 0.77 and the weighted average of latest three years is a negative EPS.
    • Price/earning ratio – The PE ratio based on the EPS of Rs. 0.77 is 38.96 and the industry average PE ratio is 25.68 with 39.79 being the highest and 11.57 being the lowest.
    • Return on Net Worth – RoNW for the year ending March 2017 is 3.1%. The company had a negative networth in FY 15-16 and for FY 14-15, the RoNW was 13.4%. The minimum RoNW required post issue so as to maintain the EPS of Rs. 0.77 is 2.56%.
    • Net Asset Value – NAV per Equity Share for the year ending 2017 is Rs. 6.
    • Comparison with listed industry peer review – The peer include Career Point Limited, CL Educate Limited, MT Educare Limited, Siddharth Education Services Limited.

     

    Arihant Institute IPO Lead Managers

    Lead Managers
    Monarch Networth Capital Limited

    Arihant Institute IPO Registrar to the Offer

    Registrar of the Offer
    Karvy Computershare Private Limited

    Arihant Institute IPO Review by Top 10 Stock Brokers

    Top Stock Brokers ReviewCompany Repu-tationCompe-titive EdgeFinan-cial State-mentPopu-larity IndexPromo-ters Repu-tation
    Angel Broking5.6/105.7/105.6/105.9/105.9/10
    Sharekhan5.6/105.9/105.6/105.9/105.6/10
    Kotak Securities5.7/105.6/105.7/105.9/105.7/10
    ICICI Direct5.7/105.7/105.7/105.9/105.9/10
    IIFL5.6/105.6/105.8/105.0/105.9/10
    Edelweiss5.6/105.7/105.7/105.7/105.6/10
    Zerodha5.7/105.9/105.6/105.9/105.0/10
    5Paisa5.9/105.9/105.7/105.9/105.9/10
    Karvy5.7/105.7/105.6/105.9/105.9/10
    Motilal Oswal5.9/105.9/105.6/105.7/105.6/10

    Arihant Institute IPO Grey Market Premium

    The grey market for an IPO generally opens 15 days before the official release of the IPO. Thus, for Arihant Instiute the grey market must have opened and the IPO would have been on trade already. The grey market generally works on kostak rates which includes a grey market premium as well. The IPO for Arihant Institute is already being traded in grey market and the prices are on premium as well.


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