Now Reading: ALLEN Career Institute plans Rs 3,800 crore IPO for expansion
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ALLEN Career Institute plans Rs 3,800 crore IPO for expansion
Kota-based test-prep company ALLEN Career Institute is preparing a Rs 3,800 crore initial public offering to fund a major expansion across India, including technology investments and selective acquisitions. The 38-year-old firm has…
Kota-based test-prep company ALLEN Career Institute is preparing a Rs 3,800 crore initial public offering to fund a major expansion across India, including technology investments and selective acquisitions. The 38-year-old firm has transformed from a family-run coaching centre into a professionally managed, technology-enabled business.
CEO Nitin Kukreja said the company is evaluating expansion into additional markets through organic growth and acquisitions. The move comes as India's coaching industry is projected to grow from $32 billion to $52 billion by 2030, with the K-12 supplementary education market offering over $19 billion in opportunity.
ALLEN has expanded from 43 cities in FY22 to 78 cities across 21 states and union territories. It has set up a technology centre in Bengaluru with over 200 engineers and launched AI-powered platforms including ALLIE for doubt-solving and Eureka for Class X students. The IPO proceeds will accelerate regional expansion and strengthen AI capabilities.
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The IPO filing will test whether India's edtech market can sustain large public offerings after the sector's 2022-23 downturn. Bodhi Tree Systems, backed by James Murdoch and Uday Shankar, paid $600 million for a 20% stake in 2022, valuing the firm at $3 billion. The company's shift from Kota-centric operations to a pan-India network mirrors the strategy of listed peers such as NIIT and Aptech. Sebi's approval timeline and investor appetite for a test-prep IPO will determine whether ALLEN can replicate offline centres' success in a hybrid model where its Bengaluru tech team builds AI tutoring tools alongside classroom teaching.
Source: thehindu.com
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