Tutorials Point India Limited IPO
(i) The company was incorporated on June 12th, 2014 as a Private Limited Company under the name and style of Tutorials Point (India) Private Limited under the provisions of the Companies Act, 2013 with the Registrar of Companies, Hyderabad, Telangana.
(ii) The company is an online education service provider, is presently working towards publishing high-quality educational content, notes, videos & resources (e.g. coding terminals, development tools, articles, questions & answers) to students as well as IT professionals worldwide.
(iii) The idea of Tutorials Point originated from the idea that there exists a class of readers who respond better to online content and prefer to learn new skills at their own pace from the comforts of their drawing rooms. Since inception, the tutorial point has strived to deliver “Simply Easy Learning” with clear, crisp, and to-the-point content on a wide range of technical and non-technical subjects for students.
Most of the content and resources are freely available to encourage readers to acquire as many skills as they would like to. A customer can directly access the content without having to register on the website (https://www.tutorialspoint.com/) for most of the content available.
(iv) In FY 2018-19, they have around 12.87 Cr readers worldwide who read more than 64.54 Cr pages of the tutorials. With approx. than 25.7 Cr sessions held in above period with an average session duration of around 4 mins, they have created a strong base in the online education services worldwide.
Objects of the Tutorials Point India Limited IPO:
Tutorials Point India Limited IPO Details:
|Open Date:||Sep 30 2019|
|Close Date:||Oct 03 2019|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Building|
|Issue Size:||20.10 Cr.|
|Lot Size:||2000 Shares|
|Issue Price:||₹ 60-64 Per Equity Share|
|Listing At:||NSE Emerge|
|Listing Date:||Oct 14 2019|
Promoters And Management:
Financials of Tutorials Point India Limited IPO:
|Year||Revenue(Cr)||EBITDA(cr)||PAT(Cr)||No. of Shares(cr)||EPS|
Comparison With Peers:
Recommendation on Tutorials Point India Limited IPO:
Lead Manager of Tutorials Point India Limited IPO:
Registrar of Tutorials Point India Limited IPO:
Discussion on Tutorials Point India Limited IPO:
(i) Total Shares after IPO = 1.065 Cr
(ii) IPO Price = 64
(iii) M.Cap = ~70 Cr
(iv) Revenue = 10 Cr
(v) PAT ( FY19) = 4.03 Cr
(vi) P/E= 17
(vii) Mcap/Sales = 7
The Valuation are very expensive. The company has no growth in revenue in the last 3 years. The revenue for FY19 is just 10 cr and the company is asking valuation of 70 Cr which is quite high.
Add to this
– mostly Indian traffic where it is difficult to earn money
– Byjus and topper are way ahead of this and burning huge money so difficult for tutorials point to scale up with this amount.
1. No growth in revenue in the last 3 years.
2. No moat in the business.
3. Anybody with good skills can start his/her YouTube channel and start earning and competing.
4. No capex is required which means easy to start a business.
5. Highly competitive sector.
6. In the past no company in education sector has made money for investors.
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