Sodhani Academy hits upper circuit after listing at 32.5% premium on BSE SME; check details

Shares of small and medium enterprise (SME) Sodhani Academy of Fintech Enablers Ltd made a stellar trading debut on Monday, September 23, listing at nearly 33% premium on the BSE SME platform.

The stock opened the session at ₹53, up 32.5% from its initial public offering (IPO) price of ₹40 per share. Within minutes of the session opening, the share price rose another 5% to hit the upper circuit limit at ₹55.65.

Since the minimum bid quantity in the Sodhani Academy of Fintech Enablers IPO was 3,000 shares, successful bidders who were allotted shares in the primary issue were sitting on listing gains of ₹39,000 (₹13 x 3,000) as soon as the stock started to trade on exchanges.

Sodhani Academy IPO details

The ₹6.12-crore Sodhani Academy IPO was open for subscription from September 12 to September 17.

The public offer received a massive response from investors, getting oversubscribed by a whopping 439 times during the three-day bidding period. Investors had applied for 63.7 crore shares against the 14.52 lakh shares on offer.

The non-institutional investors’ (NII) category was the most subscribed at over 511 times. Meanwhile, the portion reserved for retail investors was overbooked by 358.5 times.

Sodhani Academy of Fintech Enablers IPO was a fixed-price issue. It consisted of a fresh issuance of 9.7 lakh shares, aggregating ₹3.88 crore, and an offer-for-sale (OFS) of 5.6 lakh shares, aggregating ₹2.24 crore.

Shares in the IPO were offered at ₹40 apiece in a lot size of 3,000 shares. This meant that investors could bid for a minimum of 3,000 shares and in multiples thereof.

The company had earlier said that it planned to utilize the net proceeds from the fresh issuance to build a content studio and offline training infrastructure, procure information technology (hardware including software), develop course material content, enhance brand visibility and awareness, develop a learning management system (LMS) application, and for general corporate purposes.

Founded in 2009, Sodhani Academy of Fintech Enablers offers financial training, consulting, and learning services. The company provides training in fundamental and technical analysis, the basics of the stock market, and retirement planning, among other things.

The company’s revenue increased by 51% to ₹3.07 crore in the financial year 2023-24 compared with ₹2.03 crore in 2022-23. Profit after tax (PAT), meanwhile, rose by 32% to ₹1.8 crore in FY24 compared with ₹1.38 crore in FY23.