Klassroom's initial public offering ended its first trading day with 73% of shares subscribed, according to BSE data from July 31. The edtech company received bids for 12.92 lakh shares against 17.58 lakh on offer, with retail investors nearly filling their entire quota.
Retail investors subscribed 97% of their reserved portion, bidding for 7.93 lakh shares against 8.18 lakh available. Qualified institutional buyers followed at 68% subscription, while non-institutional investors lagged at 39%. The company will list on BSE's SME platform on August 7.
How the subscription progressed through the day
The IPO opened strong. By 12:51 IST, subscriptions had already hit 40%, with retail investors at 55% of their quota. QIBs sat at 47% by midday.
Non-institutional investors showed the weakest early interest. By midday, they had bid for just 35,200 shares against 4.76 lakh available, a 7% subscription rate. This category picked up in the afternoon but still closed lowest at 39%.
The retail skew is typical for SME IPOs, where individual investors often chase listing gains while institutions apply more scrutiny to smaller floats.
What Klassroom plans to do with the money
The IPO comprises a fresh issue of 19.89 lakh shares and an offer for sale of 4.66 lakh shares. At the upper price band of ₹151 to ₹159, Klassroom targets a ₹39 crore raise.
Proceeds will fund technology upgrades, content development, marketing and brand building, and debt repayment. The company locked in ₹11.1 crore from six anchor investors on July 30, the day before the public issue opened.
Klassroom's financial performance
The edtech startup posted a net profit of ₹7.6 crore in FY26, up 162% from ₹2.9 crore in FY25. Operating revenue reached ₹23 crore, a 128% increase from roughly ₹10 crore the prior year.
These growth rates are strong, but the absolute numbers are small. At ₹23 crore in revenue and a ₹39 crore raise, Klassroom is pricing itself at roughly 1.7x trailing revenue before accounting for the fresh capital dilution.
Logicity's Take
Retail investors are doing the heavy lifting here, which often signals speculation on listing pops rather than conviction in long-term value. The 97% retail subscription against 39% NII interest is a notable gap. For fintech teams watching SME IPO dynamics, Klassroom's listing on August 7 will be a useful data point: does the retail enthusiasm translate to sustained trading, or a quick exit? The company's fundamentals look healthy for its size, but the real test comes post-listing.
What happens next
The IPO closes after its subscription window ends. Klassroom is set to debut on BSE's SME platform on August 7. Share allotment will follow standard timelines, with refunds processed for unsuccessful bidders.
Investors who applied should track the registrar's portal for allotment status. Given the retail-heavy subscription, allotment ratios may disappoint smaller applicants if the issue is oversubscribed by closing.
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Source: Inc42 Media / Anne Florentyna
Huma Shazia
Senior AI & Tech Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
