Klassroom SME IPO closes at 1.46x subscription

Klassroom’s public issue closed subscribed 1.46 times, per BSE data cited by Inc42. The book drew bids for 25.66 lakh shares against 17.58 lakh on offer. Note that the report’s headline flagged 1.18x during day three; the final figure the article confirms is 1.46x.

Retail carried it. The retail portion was subscribed 1.79 times, with 14.64 lakh bids against 8.18 lakh reserved. Non-institutional investors came in at 1.35 times, 6.42 lakh bids against 4.76 lakh reserved. Qualified institutional buyers subscribed exactly 1.00 times, 4.64 lakh bids against 4.64 lakh reserved. That is a book that cleared rather than one that was chased.

The edtech, which runs a digital learning platform in the K12 segment, was raising ₹39 crore at a price band of ₹151 to ₹159 per share. The report lists a fresh issue of 19.89 lakh shares and an offer for sale of 4.66 lakh shares, which together exceed the 17.58 lakh shares it reports as on offer for subscription. The article does not reconcile the two figures. Listing is set for 7 August on the BSE SME platform, with proceeds going to tech upgrades, content development, marketing and brand building, and debt repayment.

The financials were the pitch. FY26 operating revenue rose 128% to ₹23 crore from ₹10 crore. Net profit rose 162% to ₹7.6 crore from ₹2.9 crore. A ₹39 crore ask against ₹7.6 crore of annual profit is a restrained one by Indian startup standards.

For a founder the interesting part is not the multiple. It is that a profitable business doing ₹23 crore in revenue cleared a public listing at all. The SME board has quietly become a real capital and exit route for Indian consumer and edtech companies that are too small for growth equity and too profitable to need it. Marketing spend funded this way is disclosed, dated and auditable, which is more than any private competitor has to offer.

The QIB book at exactly 1.00 times is the caution flag. Institutions took their allocation and stopped. If you benchmark against listed SME comparables, watch whether Klassroom holds that 128% growth once marketing is paid for with public money rather than founder discipline. Year two is usually where that question gets answered.