Arihant Institute Limited IPO Review (Date, Price, DRHP)

Arihant Institute Limited IPO Review

Arihant Institute Limited (AIL) is incorporated in 2007. This company is mainly engaged in providing coaching and educational guidance for students. It is Gujarat based company. So, here is some basic information on Arihant’s issue price, face value, issue type, issue size etc for their forthcoming issue. So, we feel, our Arihant Institute Limited IPO Review will be significant for those who want to invest in this. The list is as follows:

About Arihant Institute Limited IPO Review :

  • IPO Opens on – May 24, 2018.
  • IPO Closes on – May 28, 2018.
  • Face Value – Rs. 10 Per Equity Share.
  • Issue Price – Rs. 30 Per Equity Share.
  • Issue Type – Fixed Price Issue IPO.
  • Retail Allocation – 50%
  • Market Lot – 4000 Shares.
  • Minimum Order Quantity – 4000 Shares.
  • Issue Size – 2,500,000 Equity Shares of Rs 10 aggregating up to Rs 7.50 Cr.
  • Listing Exchange – BSE SME Exchange.
  • Draft Prospectus – Download.

Objectives of the issue :

  • Training center expansion.
  • Technical Infrastructure -servers and studio, portal and content development.
  • Branding and marketing.
  • Corporate office restructuring.
  • General corporate purpose.
  • IPO related expense.

About The Company –

  • Arihant Institute Limited is appearing for professional courses includes chartered accountant (CA), company secretary and CMA.
  • This company operates the educational program and coaching under the Brand Name Arihant Institute since inception.
  • Arihant Institute Limited is providing coaching as well as guidance from the entry level test examinations till final examinations and they cover all of the subjects in depth with a test series to improve the student’s confidence and also overall result.
  • This Institute has given education to more than 10000 students appeared for professional and graduates exam with dedicated professors and trained staff.
  • AIL’s number of students have improved with dedicated efforts from the promoters. From the institution, there were 205 National Rankers in the Chartered Accountancy Inters as well as Final courses. All total they got 2000+ Chartered Accountants (CA) and 175+ Company Secretaries (CS).
  • This company has 23 employees on its payroll.
  • AIL premises spread over 20,000 sq. feet.
  • The company’s covered area includes twelve AC classrooms. They also have well-equipped library, staff room, canteen, two studios, backup laboratory, conference hall, large admin blocks etc.

Arihant Institute Limited

Promoters of the company :

  • Mr. Sandip Vinodray Kamdar is the Founder and Promoter of this company.
  • Mr. Vinodray Keshavlal Kamdar, is Sandip Vinodray Kamdar’s father, the Founder and also a Promoter of this company.
  • Mrs. Maduben Vinodray Kamdar is Student Engagement Officer and Promoter of this company.
  • Mrs. Anjali Sandipbhai Kamdar, is Sandip Vinodray Kamdar’s mother, the Founder and also a Promoter of this company.

Company Financials :

Arihant Institute Limited IPO

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Arihant Institute Limited IPO

Arihant Institute Limited IPO

Arihant Institute Limited IPO Review:

The draft red herring prospectus reflects there is an abrupt increase in the profit for the last few years. So, let’s focus on the other side of financial statements. Their earnings per share or eps stand at 0.77. According to DRHP price to earnings ratio is 38.96 based on the basic and diluted EPS of FY 2016-2017. In the last FY, the return on net worth (RoNW) stands at 3.00. Arihant has a NAV/share of 6.00 as per the last financial year. Hence, the review of p/e ratio is quite good but apart from this, other data is not good enough. Hence, based on the data our Arihant Institute Limited IPO Review has a NEUTRAL to NEGATIVE view on this issue. So, it is advised to take some more time before investment. The risk is high here.

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