Tuesday, October 2, 2018

IPO ANALYSIS : Aakash Educational Services Limited - Unsustainable business model - Avoid

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Issue Details :

Issue opens  / closes on

Issue size
OFS - 1.85 Cr equity shares
Face Value
Rs 5
Around Rs 500
Coaching / test preparatory services
J C Chaudhry
Bse, nse
Kotak Mahindra, Citigroup, CLSA
Link Intime

Remarks :

The company is in to parallel education system without any sanctity and accountability. These kind of institutions are taking advantage of the void created in the system and exploiting the students and hapless parents. Family run enterprise. Government is bound to regulate this kind of business, which will affect revenue and profitability. The business model is unsustainable. 

In 2010, Career Point Infosystem Came IPO at Rs 310. The stock, now  is trading around Rs 68. Career Point is one of the top value destroyer.

Avoid the IPO.

Await for detailed analysis.

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