Wagons Learning IPO GMP

Q: What is the Expecting Returns on the Wagons Learning IPO?

Wagons Learning IPO Expected Returns is 0.00%.

April 28, 2025 Written By Mihir Gohel, Reviewed and Fact Checked by Harpal Parmar

Wagons Learning Limited, a B2B corporate training and skill development solutions provider, is set to launch its SME IPO on May 2, 2025, with a price band of ₹78 – ₹82 per share. The ₹38.38-crore issue comprises fresh issuance (₹25.26 crore) and an offer-for-sale (₹13.12 crore) by promoters. Funds will address working capital needs, debt repayment, and corporate purposes. While its B2B model and digital learning verticals show scalability, risks include lease-dependent operations and past regulatory non-compliances.

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Latest IPO GMP

Last updated on 06 May 2025 11.45

₹82

IPO Offer Price

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Listing Price

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Expert Opinions

Wagons Learning IPO enters a cautiously optimistic market, buoyed by India’s growing emphasis on skill development and digital learning adoption, though SME offerings often face liquidity concerns. Wagons Learning’s strengths include a B2B model, NSDC certification, and exceptional FY24 financial metrics (60.80% ROE, 45.27% ROCE), reflecting efficient capital use and scalability in corporate training. However, risks such as lease-dependent operations, client concentration, and past regulatory lapses raise concerns, alongside questions about the sustainability of its FY24 revenue surge (₹16.17 crore to ₹31.79 crore) and PAT jump (₹0.71 crore to ₹5.52 crore).

The ₹78 – ₹82 price band appears aggressive relative to peers but is partially justified by profitability. Long-term prospects hinge on diversifying clientele and expanding digital offerings, aligning with sector tailwinds, though success depends on execution in a fragmented market and mitigating operational risks, making it suitable for investors comfortable with SME-specific challenges.

Investor Considerations

Wagons Learning IPO demonstrates strong fundamentals with revenue surging from ₹9.89 crore (FY22) to ₹31.79 crore (FY24) and PAT jumping from ₹0.09 crore to ₹5.52 crore, reflecting a robust PAT margin of 16.81% (FY24). The debt/equity ratio of 0.31 indicates manageable leverage, while the IPO’s aggressive Price-to-Book Value of 15.95 at ₹78 – ₹82 per share hinges on growth expectations in India’s corporate training sector, which benefits from rising demand for digital learning and government skill initiatives.

Growth prospects include expansion into digital platforms and diversified industry verticals, though risks like client concentration, lease-dependent operations, past regulatory non-compliances, and competition from established players could pressure margins. For investors, Wagons Learning offers potential for long-term value creation, but short-term investors should be cautious due to premium valuations and sector cyclicality. Long-term holding may yield better returns as the sector matures.