India’s IPO Revolution: A Guide for India K-12 to Ring the Bells at Dalal Street
India is a hotbed for companies going public right now. Conglomerates and startups alike, are taking the IPO route to give early investors an exit and fuel their next phase of growth. Mobikwik, Vishal Megamart, Swiggy, Hyundai, Bajaj Housing Finance, Unicommerce, Firstcry, Ola Electric, Awfis, GoDigit, Indigene, Vodafone; the list is endless. 2025 is expected to surpass 2024 by a mile, with total proceeds expected to be around $35 billion. (Source: Kotak)
Additionally, Taaleem, a leading private school operator in the UAE, went public on the Dubai Financial Market (DFM) in 2022, raising AED 750 million (~$200 million). Since then, the stock has performed exceedingly well and is up nearly 50% from its listing price. Before its $14.5 billion acquisition, Nord Anglia Education considered an IPO to fund expansion and strengthen its market position. However, the buyout by EQT and partners shifted it to private ownership.
All this noise is making India K-12 go back to the drawing board and chart how they can ride this wave at Dalal Street. And why not? The sector is growing fast, international groups are launching their institutions here, and private equity money continues to come in.
India K-12 Inc is rethinking corporate finance strategies and considering the capital market as a viable path for expansion. While the excitement around IPOs is palpable, education groups have to navigate a highly regulated industry, and the lack of precedents in the space bring in a sense of uncertainty and a bunch of what-ifs.
Decluttering all the chaos requires understanding three key elements:
1. Why India K-12 is growing and why it will continue to do so
2. How India K-12 can capitalize on India’s capital markets boom
3. Rationale for IPOs as a growth strategy
4. Key steps to building an IPO-ready K-12 organization
Why India K-12 is growing and why it will continue to do so
1. The Booming Middle Class is Demanding Better Education
India’s education market is growing fast, fueled considerably by the burgeoning middle class. As more families ascend into the middle-income bracket and higher, there’s a heightened demand for quality education for their children. These parents are professionals / entrepreneurs who understand the value of good education and insist on better for their children.
2. The Private Sector is Capturing a Large Share of the Growing Education Market
Consequently, this surge in demand is driving an increase in the number of premium and international schools across the country. This trend doesn’t halt at the school level; it extends further to higher education, resulting in a growth of colleges as well.
3. International School Groups Continue to Show Interest in India K-12
As the restrictions on foreign schools in China became stringent, international K-12 groups have started to build a strong presence in India; looking at it as an extremely lucrative economy. A report from education consultancy Cairneagle indicated a sharp drop in the number of British institution-backed schools planned for China — from 80% a few years prior to a mere 15% by January 2023 (Source: The Ken).
From a product mix PoV, new schools being established brings options for Indian parents, while simultaneously encouraging market incumbents to continue innovating for the Indian market. As it goes for any market, disruption/innovation is good — for consumers and enterprises alike.
It is clear that the formal education is set for rapid growth, and that there is going to be an increasing requirement for high quality education.
Ambitious operators are scaling up and innovating to capture this opportunity, and continue to explore ways to finance their expansion.
How India K-12 Can Capitalize on India’s Capital Markets Boom
India’s stock market witnessed an unprecedented IPO boom in 2024, with companies across sectors rushing to go public and investors eagerly participating. From tech startups to established players in finance and consumer goods, businesses took advantage of strong economic momentum and high liquidity to raise funds. Retail investors flocked to new listings, global institutional investors deepened their exposure, and several IPOs saw massive oversubscription. India’s rising prominence as a global investment destination, coupled with favorable market conditions, played a key role in this frenzy.
As 2025 is off to a start, the year is expected to have IPOs worth $35 billion, surpassing 2024 by a mile. (Source: Kotak Mahindra Bank).
K-12 Companies Broadly Operate in Two Categories:
For K-12 companies to capitalize on built businesses or raise financing for growth, there are two avenues from public markets:
- REITs — A Real Estate Investment Trust (REIT) allows property owners to pool income-generating assets and list them on the stock exchange, providing investors with returns through rental income and capital appreciation. In India, PropCos can use REITs to monetize their real estate assets while ensuring long-term operational stability. However, given the limited number of REITs in India and the small number of scaled PropCos (such as Cappella, InvestCorp, and GHS), the market is still in its early stages.
- IPOs: An Initial Public Offering (IPO) allows companies to raise capital by offering shares to the public, providing liquidity for growth, expansion, and investor exits. In India, while the education sector has seen some IPO activity, there is still significant untapped potential. Given the large number of ManCos operating in the space (see below), there is room for more players to explore public listings. A few education-focused companies have already paved the way — Shanti Educational Initiatives Ltd, Veranda Learning, IEC Education Limited, Zee Learn Ltd, and VJTF Eduservices — demonstrating the viability of IPOs in this sector. As investor interest in education and edtech continues to grow, more ManCos could leverage the public markets.
Rationale for IPOs as a Growth Strategy
India K-12 can see significant benefits from successfully listing on the markets. The sector offers a great mix of capital-intensive opportunities, steady revenue streams, and resilience even in tough economic times.
- Capital Intensive Business: ManCos can also often be capital intensive businesses, depending on the structure of services provided by them. For instance, if the ManCo offers property on rentals, then large capital is required to acquire land / lease, and construct a state of the art facility for customers. Another, if the ManCo offers technology services, then capital will be required for development of software products.
- Growing Annuity Business: ManCo Contracts are structured as win-win contracts where if the customer grows, then so does the service provider. To that effect, as their customers increase fees / admissions, ManCos also grow in size and revenue
- Recession Proof: Being an essential service provider in education, ManCos remain largely recession proof and have stood the test of time during periods like Covid-19. Having said that, certain services provided which may be non-essential can see a temporary slow down as well.
- Can Drive India as HR Capital Globally: By fostering top-tier talent and producing skilled graduates, success of ManCos in the India K-12 story can play a key role in positioning India as a global hub for human resources.
Key Steps to Building an IPO Ready K-12 Organization
There are seven key steps to a company going public:
1. Appoint an Investment Banker: The company hires investment bankers and advisors to guide the IPO process. They assess financials, prepare documentation, and set a strategy.
2. Due Diligence & Regulatory Filings: A thorough review of the company’s financials, operations, and compliance. Submission of the Draft Red Herring Prospectus (DRHP) to SEBI.
3. SEBI Approval & Stock Exchange Application: SEBI reviews the DRHP and approves the IPO. The company applies for listing on BSE/NSE.
4. Roadshow & Investor Marketing: The company and investment bankers promote the IPO to potential investors. Meetings with institutions and retail investors to generate interest.
5. Pricing & Share Allocation: Shares are priced using either the Fixed Price or Book Building method. Shares are allotted to investors based oia an demand.
6. IPO Launch & Public Subscription: The IPO opens for public bidding. Investors apply for shares, and the company collects funds.
7. Stock Market Listing & Trading Begins: Shares are listed on the stock exchange within six days of the IPO. Investors can start buying and selling the company’s stock.
While the seven key steps to navigating the IPO process are crucial — appointment of an investment banker, due diligence, SEBI approvals, roadshows, pricing, and listing — it’s equally, if not more, important for a company to be business-ready and have a clear strategy for sustainable growth post-IPO.
Business Readiness:
Going public should be about building a lasting business, not just providing an exit for private investors
For ManCos, compliance is a larger concern than profitability. Areas such as review of service agreements with related parties for transfer pricing levels, registration of intellectual property and trademarks are key.
Focus on growth prospects: an expanding customer base, diversifying services (online education, training, international expansion etc), show strong visibility to public market investors
Building an IPO-Ready Organization:
Appoint leaders with experience in scaling up companies in public markets
IPO is a new phase with more scrutiny, so businesses need clean financials, a good CFO, and an empowered team to manage costs effectively
Prepare your finance team to justify every expense and maintain a sustainable profit/loss system
Have a strong organizational structure that can deliver on a quarterly basis
Prepare for post-IPO scrutiny, with a focus on transparent, accountable operations.
Achieving Guidance with Consistency:
Public markets are not just about growth rates, but ensuring long-term sustainability.
Operational and financial infrastructure must be ready to support growth while navigating regulatory complexities.
Setting Up a Board as a Strategic Advantage:
A strong, effective board helps guide the company and builds trust with investors
Companies should keep their boards small and efficient, ensuring they accelerate, protect, and guide the company
Recommendations for Promoters
For promoters thinking about going public, it’s key to ensure you have a solid stake in the company, understand the impact on control, and focus on compliance and growth. Make sure your vision for expansion and scaling is clear, as this will be a major part of your story. If you have any questions or need guidance, feel free to reach out to us for clarifications — connectwithus@loestro.com
About LoEstro Advisors:
LoEstro Advisors is an investment banking firm specializing in sell-side fundraise and M&A advisory, along with a strong consulting arm. Recognized as the №1 financial advisor in education in India, we are the advisor of choice to India’s blue chip education businesses.
Over the last four years, we have grown to be one of India’s largest (in terms of M&A transactions) homegrown boutique investment banks, with $1billion + worth of combined deals closed across education, healthcare, consumer, and technology sectors.
Rakesh Gupta, the Managing Partner of LoEstro Advisors, is a seasoned professional in education with over 15+ years of experience in the sector. Prior to founding LoEstro, he led the Finance & Strategy at Oakridge International Schools / People Combine, and was pivotal in the group’s sale to Nord Anglia, in India’s first ever cross-border K-12 M&A. Rakesh has advised over 100+ clients in education, across M&A, Capital Raise, Sale and Leasebacks, and Consulting engagements.
