IPO Details
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IPO Size
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Schedule of Skill Tree Consulting IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Skill Tree Consulting IPO
The IPO of Skill Tree Consulting Ltd comprises a fresh issue of equity shares of face value of ₹10 each. There’s no offer for sale in this IPO, which is a 100% book-built issue. The price range and lot size are TBA.
The listing of shares will take place on TBA. The credit of shares to the demat account will take place on TBA. The allotment of shares will take place on TBA. The basis of allotment and the initiation of refunds will take place on TBA.
Objectives of Skill Tree Consulting IPO
- Funding working capital requirements of the company
- General corporate purposes
Skill Tree Consulting IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | [.] Equity shares of face value of ₹10 each |
Offer for Sale | NA |
EPS in ₹ in FY 24 | 13.36 |
Skill Tree Consulting IPO Share Offer and Subscription Details
| Investor | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net issue |
Non-institutional Applicants | Not less than 15% of the net issue |
Retail Individual Investors | Not less than 35% of the net issue |
Industry Outlook
The education sector in India was estimated to be worth US$ 117 billion in FY20 and is expected to reach US$ 225 billion by FY25. Also, the Indian EdTech market size is expected to reach US$ 30 billion by 2031, from US$ 700-800 million in 2021.
According to KPMG, India has also become the second largest market for E-learning after the US. The online education market in India is expected to grow by US$ 2.28 billion during 2021-2025, growing at a CAGR of almost 20%.
Company Information
Skill Tree Consulting Ltd currently provides a range of diversified and integrated skill training programs designed to equip students and young professionals with industry-relevant skills that enable them to thrive in a competitive job market.
The programs span a wide array of industries, including healthcare, information technology, hospitality, retail and automotive. Each course combines theoretical knowledge with hands-on practical training, industrial visits, and guest lectures to provide comprehensive exposure to various career paths.
Strengths of Skill Tree Consulting IPO
Comprehensive and Sector-Specific Training Solutions
Skill Tree Consulting Ltd offers a broad spectrum of training services that are both comprehensive and tailored to specific sectors. Its expertise spans critical areas including defence, ICT, and vocational training and setting up incubation centres across essential industries like healthcare, retail, IT, education and automotive.
This extensive and specialised knowledge allows it to deliver targeted, high-impact training programs that address the unique needs of each sector.
Proven Expertise in Delivering Tailored Training Solutions
The company’s key strength is the proven track record of successfully completed projects, which underscores its capability of delivering effective, high-impact training programs tailored as per industry needs.
For instance, it has set up 26 English language labs with 3,600 seats in just 2 months, which demonstrates efficiency and scalability. Additionally, it has strong emphasis on quality assurance to maintain high standards in their training programs.
Broad Reach and Impact
Skill Tree Consulting Ltd has a notable presence in 18 states where it has provided training in the past. Its business is primarily focused on B2G (Business-to-Government) engagements. It has built a strong reputation for reliability and competence in fulfilling government contracts.
By engaging with diverse communities and providing essential services, it ensures that the training programs have a lasting and transformative impact on the lives of many while maintaining strong, trusted relationships with governmental bodies.
Competitive and Affordable Pricing
The company possesses the capability to deliver high-quality training solutions at cost-effective rates, highlighting its commitment to making essential services accessible to a diverse audience.
By focusing on affordability without compromising on quality, it aims to empower individuals and organisations with the skills they need to succeed. Its approach ensures that vital training resources are available to a wider range of people, fostering growth and development across various sectors.
Comprehensive Project Management Skills
The company’s manpower has sufficient experience to manage complex projects from inception to completion. It prioritises the quality of training by first training its trainers with experienced professionals.
Only after this rigorous training process, does it deliver these high-quality training programs to the market. This ensures that the trainers are well-prepared and proficient, enhancing the overall effectiveness of the training provided and maintaining a high standard of excellence throughout the delivery process.
Risks of Skill Tree Consulting IPO
- Heavy Dependence on Government Contracts:
Reliance on government contracts and funding constitutes a significant risk factor for the company. A substantial portion of its revenue is derived from these sources, making it vulnerable to changes in government policies, budget allocations, and administrative priorities. Any reduction, delay, or termination of government contracts and funding could adversely affect its financial stability and operational capabilities.
- Difficulty in Recruiting and Retaining Skilled Educators:
The difficulty in recruiting and retaining skilled educators and trainers poses a significant challenge, impacting the quality of programs offered. A shortage of qualified professionals can lead to inconsistencies in instruction, reduced program effectiveness, and diminished student outcomes.
- Compliance with Various Educational Regulations:
The company ensures compliance with various educational regulations. However, regular compliance can be both complex and resource-intensive and any non-compliance can lead to disruption in the financial stability of the company and also loss of revenue.
Skill Tree Consulting IPO Financials
IPO Registrar and Book Running Lead Manager
- IPO Registrar: KFin Technologies Ltd
- Book Running Lead Manager: GYR Capital Advisors Pvt Ltd
Business Model
The areas of service of Skill Tree Consulting Ltd comprises:
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Vocational training: The company is dedicated to building a skilled workforce that meets the demands of various industries by offering a wide array of training programs tailored to sectors such as healthcare, IT, retail, automotive, beauty and wellness, and hospitality.
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Tech setup: In addition to its core focus on vocational training and skill development, Skill Tree Consulting Ltd also excels in infrastructure and technology setup.
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School services: The company offers one-day training programs for school students, including but not limited to defence training and various vocational training sessions.
Company Growth Trajectory
The revenue from operations of Skill Tree Consulting Ltd grew from ₹49.4455 crores in FY 22 to ₹301.4341 crores in FY 24. Its EBITDA margin grew from 2.52% in FY 22 to 7.21% in FY 24, while PAT margin increased from 1.43% in FY 22 to 4.68% in FY 24. Sector-specific training solutions, proven expertise in delivering tailored solutions and brand reach and impact have contributed to the company's growth over the years.
Market Position
As a funded training partner affiliated with the National Skill Development Corporation (NSDC) under the Government of India for FY 2022-23, the company operates across 18 states, engaging in various sectors. It has ISO 14001:2015, ISO/IEC 20000-1:2018, ISO 9001:2015, ISO/IEC 27001:2013 and ISO 27001:2018 certifications, ensuring adherence to the highest standards.
Skill Tree Consulting Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 302.21 | 119.35 | 49.62 |
Profit Before Tax (in ₹ crores) | 19.93 | 3.10 | 0.99 |
Profit After Tax (in ₹ crores) | 14.11 | 2.24 | 0.70 |
EPS in ₹ | 13.36 | 2.12 | 0.67 |
Skill Tree Consulting Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 19.93 | 3.10 | 0.99 |
Net Cash Flow From/ (Used in) Operating Activities (in ₹ crores) | -22.59 | 2.29 | 6.69 |
Net Cash Flow From/ (Used in) Investing Activities (in ₹ crores) | 0.41 | -2.13 | -0.69 |
Net Cash Flow From/ (Used in) Financing Activities (in ₹ crores) | 23.80 | -1.23 | -3.11 |
Cash & Cash Equivalents as at End of the Year (in ₹ crores) | 5.39 | 3.76 | 4.84 |
How to Apply for the Skill Tree Consulting IPO?
Visit the Registrar’s Website
- Visit the official website of KFin Technologies Ltd
- Click on ‘IPO Allotment Status’ from ‘Investors’ under ‘Products’
- Click on any one of the appearing links
- Choose IPO name and enter either your application number, Demat account or PAN number
- Enter captcha and click on ‘Submit’ to know the status
Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
How to Apply for the Skill Tree Consulting IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Skill Tree Consulting IPO FAQs
Where can I read more about Skill Tree Consulting business?
You can read more about Skill Tree Consulting and its IPO from the company’s red herring prospectus (RHP) [here](https://www.bsesme.com/download/344832/Final DRHP -STCL_20240930205105.pdf).
What is the Skill Tree Consulting IPO?
The Skill Tree Consulting Ltd IPO is a 100% book-built issue. It comprises a fresh issue of equity shares of face value of ₹ 10 each.
When will the IPO of Skill Tree Consulting go live?
The exact dates of the IPO are yet to be announced.
