Klassroom, an edtech startup, saw its initial public offering (IPO) subscribe 40% on the first day, with investors bidding for 7.01 lakh shares out of the total 17.58 lakh shares offered, as of 12:51 IST. The IPO, priced in the ₹151-159 band, aims to raise ₹39 crore. Klassroom plans to debut on the BSE SME platform on August 7, following the IPO subscription and a ₹11.1 crore anchor investment raised on July 30, according to inc42.com.
The IPO comprises a fresh issue of up to 19.89 lakh shares and an offer for sale of up to 4.66 lakh shares. Retail investors have shown the strongest interest, subscribing 55% of their quota with bids for 4.46 lakh shares from an 8.17 lakh share allocation. Qualified institutional buyers (QIBs) have subscribed 47% of their quota with bids for 2.20 lakh shares against 4.64 lakh shares reserved. Non-institutional investors (NIIs) have subscribed the least, with only 7% of their 4.76 lakh share quota bid so far, inc42.com reported.
Klassroom intends to use the net proceeds from the IPO for technology upgrades, content development, marketing, brand building, and debt repayment. The subscription levels indicate strong retail investor confidence, which is critical for the company’s growth plans in the competitive edtech sector. The IPO’s performance will be closely watched as a barometer for investor appetite in smaller edtech firms, with the BSE SME platform providing a key listing venue for such startups.
Klassroom’s public issue includes a fresh issue of 19.89 lakh shares and an offer for sale of 4.66 lakh shares, with the company set to list on the BSE SME platform on August 7, inc42.com confirmed.