About the Company:
Aakash Educational Services is engaged in the business of providing comprehensive test preparatory services for students preparing for medical and engineering entrance examinations for Class 11 and Class 12 students.
They also provide foundation courses (covering school boards and junior competitive examinations) for students across Class 8 to Class 10.
Company is one of the largest player in the coaching industry in India as measured by revenue.
The first center under the “Aakash” brand was started in 1988, offering test preparatory services for medical entrance examinations.
As of March 31, 2018, Company has 170 classroom centers (the “Aakash Centers”) across 103 cities and 23 states / union territories, of which they operate 67 through Franchisee arrangements.
As of March 31, 2018, they had a Student Count of 193,313 in their long-term classroom courses (comprising two-year courses, oneyear courses and repeater courses) (“Long-Term Courses”) (including at Franchisee Centers), and a Student Count of 16,250 in their digital and distance learning courses.
Aakash iTutor.
Company delivers and support their education channels through digital features, including recorded video lectures and integrated test and assessment via Aakash iTutor which includes online assessment and test series via the Aakash Test Management System, and live interactive classes via Aakash Live.
These programs expand their geographical reach beyond classrooms by allowing students to learn remotely and yet in an interactive manner.
As of March 31, 2018, they had a Student Count of 7,701 in Aakash Live and Aakash iTutor.
Aakash Educational Services Franchisee Model: (Aakash Centers)
Company had started their first Franchisee Center in 1997 and had 67 Franchisee Centers as of March 31, 2018. Through the Franchisee model, which allows asset-light expansion, they have grown quickly across new regions such as East India.
Company receives 25% to 36% of the fees, net of any concessions and refunds (“Net Fees”), collected from the students by their Franchisees, depending on the type of courses, stream and location of the Franchisee Centers.
Company categorize their programs into 3 Brands:
Aakash Medical:
Company offers entrance examinations test preparatory courses for medical undergraduate degree courses, including the National Eligibility Cum Entrance Test (NEET) and AIIMS MBBS entrance examination.
Company had a Student Count of 84,834, 93,080 and 117,457 students in their long-term classroom medical courses (including at Franchisee Centers) for FY 2016, FY 2017 and FY 2018, respectively.
Aakash IIT-JEE:
Company offers test preparatory courses for students in Class 11 and Class 12, and repeater courses for students who have passed Class 12, preparing for state engineering Common Entrance Tests (CETs) and for Joint Entrance Examinations (JEE) conducted at the state and central levels, including the JEE Main and Advanced.
Company had a Student Count of 31,479, 27,794 and 32,798 students in their long-term engineering courses (including at Franchisee Centers) for FY 2016, FY 2017 and FY 2018,respectively.
Aakash Foundations:
Started in 2009, They now offer test preparatory courses to students in Class 9 to Class 10 for subjects, being Science, Mathematics, English and Social Sciences.
Company had a Student Count of 25,899, 33,718 and 43,058 students in their foundation courses (including at Franchisee Centers) for FY 2016, FY 2017 and FY 2018, respectively.
Key Operating Parameters for Industry Players:
Management Team:
- Mr. J.C. Chaudhry (Designation: Chairman cum Managing Director)
- Mr. Aakash Chaudhry (Designation: Chief Executive Officer & Whole-time Director)
- Ms. Kamla Chaudhry (Designation: Non-executive Director)
Positives for the Company:
- Market leading position with strong brand recognition and presence across India.
- Diversified course offerings and delivery channels.
- Strong digital learning offerings leveraging on technology to expand the target audience and enhance quality of offerings.
- Standardized content and coaching methods and qualified faculty deliver strong selection track record.
- Scalable and efficient business model for a growing industry.
Financials of the Company:
| (in Crores) | FY 14 | FY 15 | FY 16 | FY 17 | FY 18 |
|---|---|---|---|---|---|
| Revenue | 329.88 | 466.87 | 586.85 | 729.61 | 981.13 |
| Net Profit | 37.93 | 35.88 | 75.87 | 63.55 | 160.18 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Aakash Educational Services Ltd | 5 | 24.21 | TBA | 272.13% | 8.83 |
| MT Educare Limited | 10 | (32.71) | ——- | (64.34) | 28.54 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | Will be Updated |
| Issue Closes on:. | Will be Updated |
| Issue Price | Will be Updated |
| Face Value | Rs.5 |
| Minimum Lot | Will be Updated |
| Minimum Investment | Will be Updated |
| Issue Constitutes | Will be Updated |
| Issue Size | Will be Updated |
| Market Cap | Will be Updated |
| Listing at | NSE & BSE |
| Equity Shares Offered | Will be Updated |
| Equity Shares Prior to the Issue | 6,66,54,612 |
| Equity Shares after the Issue | 6,66,54,612 |
Also Read: Is IPO a Right Investment for You?
Important Dates:
| Finalization of Basis of Allotment | Will be Updated |
| Initiation of Refunds | Will be Updated |
| Credit of Equity Shares: | Will be Updated |
| Listing Date: | Will be Updated |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 00:00) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | ||||
| NII | ||||
| Retail | ||||
| Employee | ||||
| TOTAL |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 24.21 | TBA | 272.13% | 8.83 |
Also Read: How to become a Successful Investor?
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
| Company Contact Info: |
|---|
| Aakash Educational Services Limited Plot No. 8, Aakash Tower Pusa Road New Delhi 110 005 India Tel: +91 11 4762 3400 Fax: +91 11 4762 3472 E-mail: compliance@aesl.in Website: www.aakash.ac.in |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247 Park L.B.S. Marg, Vikhroli (West) Mumbai 400 083 Maharashtra, India Tel: +91 22 4918 6200 Fax: +91 22 4918 6195 E-mail: aakashedu.ipo@linkintime.co.in Website: www.linkintime.co.in |
