Wagons Learning Withdraws IPO Citing Market Conditions

Digital learning solutions provider Wagons Learning Ltd. has withdrawn its initial public offering worth Rs 38.38 crore, three days into the bidding process, citing “prevailing market conditions”, according to an exchange notification issued Tuesday.

The book-built SME IPO opened on May 2 and was scheduled to close on May 6. However, based on letters from the company and its merchant banker dated May 5, the issue has now been called off.

The IPO comprised a fresh issue of 30.80 lakh shares aggregating to Rs 25.26 crore and an offer for sale of 16 lakh shares worth Rs 13.12 crore.

The issue was subscribed only 8% as of 5 p.m. on May 5, day two of bidding, according to data from the BSE SME platform. The portion reserved for retail investors was subscribed just 16%, while the non-institutional investors quota saw only 1% subscription. The issue failed to attract any bids from qualified institutional buyers. 

According to Securities and Exchange Board of India guidelines, a company must receive applications for at least 90% of the issue size. If this threshold is not met, the issuer is required to refund the entire application amount to investors. 

Wagons Learning had set a price band of Rs 78 to Rs 82 per share, with a minimum application size of 1,600 shares. This translated to a minimum investment of Rs 1,24,800 for retail investors, and Rs 2,62,400 for high net-worth individuals applying for at least two lots.

Proceeds from the issue were proposed to be used to meet working capital requirements (Rs 7.5 crore) and repay certain outstanding borrowings (Rs 4.5 crore).

Wagons Learning provides corporate training, digital learning, and skill development solutions across sectors such as automotive, banking, pharmaceuticals and healthcare. It operates on a business-to-business model, offering services like trainer outsourcing, payroll management, and certification programs.

The IPO was to be listed on the BSE SME platform, with allotment and listing originally scheduled for May 7 and May 9 respectively.