Klassroom, an edtech startup, saw its IPO on the BSE SME platform reach a 91% subscription rate by 14:20 IST on the second day of bidding. Investors placed bids for 15.99 lakh shares out of the total 17.58 lakh shares on offer. The IPO price band is set between ₹151 and ₹159, with the company aiming to raise ₹39 crore through a fresh issue and an offer for sale, according to inc42.com.
Retail investors have shown strong interest, oversubscribing their quota by 1.2 times with bids for 9.8 lakh shares against 8.17 lakh shares allocated to them. Qualified institutional buyers (QIBs) have subscribed 68% of their quota, bidding for 3.15 lakh shares out of 4.64 lakh shares reserved. Non-institutional investors (NIIs) have subscribed 63% of their quota, placing bids for 2.99 lakh shares against 4.76 lakh shares available. Prior to the IPO, Klassroom raised ₹11.1 crore from six anchor investors on July 30, inc42.com reported.
The edtech company plans to use the net proceeds from the IPO for technology upgrades, content development, marketing, brand building, and debt repayment. Klassroom reported a net profit of ₹7.6 crore in FY26, a 162% increase from ₹2.9 crore in FY25, alongside growth in operating revenue. This financial performance and the strong subscription rates highlight growing investor confidence in the edtech sector, according to inc42.com.
The IPO includes a fresh issue of up to 19.89 lakh shares and an offer for sale of up to 4.66 lakh shares. The subscription data as of the second day indicates robust demand, with retail investors leading the momentum. Klassroom’s next update on the IPO status is expected after the close of the bidding period.