Wagons Learning Withdraws IPO Amid Low Investor Interest and Market Conditions

Wagons Learning, a company based in Pune that provides corporate training, digital learning, and skill development solutions, has decided to withdraw its Initial Public Offering (IPO). The IPO had been opened for subscription on May 2, 2025, and was set to close on May 6, 2025.

The decision to cancel the IPO was made in consultation with the company’s merchant banker, Khandwala Securities. On May 5, 2025, Wagons Learning issued a formal notice to the Bombay Stock Exchange (BSE) explaining the withdrawal. The notice stated that the company decided to pull back the IPO “due to prevailing market conditions.”

Poor Investor Response

The IPO, which aimed to raise funds for the company, did not attract much interest from investors. According to the data from the BSE SME platform, by the end of the second day of subscription, the IPO was only 8% subscribed. The retail investor portion was subscribed to 16%, but the non-institutional investors (NIIs) and qualified institutional buyers (QIBs) showed very little interest. The NII portion was only 1% subscribed, and the QIBs did not subscribe at all.

SEBI’s Minimum Subscription Requirement Not Met

For an IPO to move forward, the Securities and Exchange Board of India (SEBI) requires a minimum subscription of 90% of the total issue size. Since Wagons Learning’s IPO did not meet this requirement, the company was compelled to withdraw the offering. When an IPO fails to reach the necessary subscription level, the company must return the full application amount to all investors who participated.

Planned Fundraising Amount

Wagons Learning had planned to raise ₹38.38 crore through the IPO. This would have been a combination of a fresh issue of shares and an offer for sale (OFS) component, which was set to involve 1.6 million shares.