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CL Educate IPO subscribed 76% on day two

Capital Market 

The IPO receives bids for 25.3 lakh shares

The initial public offer (IPO) of CL Educate received bids for 25.3 lakh compared to 33.32 lakh on offer, on the second day of bidding for the IPO today, 21 March 2017, data on NSE showed as at 16:30 IST. The IPO was subscribed 76%.

The IPO of upto 47.6 lakh of CL Educate opened for bidding yesterday, 20 March 2017, and closes tomorrow, 22 March 2017. The offer comprises a fresh issue of 21.8 lakh equity by the company and an offer for sale (OFS) of upto 25.79 lakh equity by the selling shareholders, including upto 9.74 lakh equity by certain promoters and members of the promoter group. The offer shall constitute 33.61% of the post offer paid-up equity share capital of the company.

Ahead of the IPO, the IPO committee of the board of directors of CL Educate allocated 14.28 lakh to nine anchor investors at an upper end of IPO price band at Rs 502 per share aggregating to Rs 71.68 crore.

The price band for the IPO was fixed at Rs 500-502 per share. At the lower end of the price band, the issue size works out to Rs 238 crore. At the higher end of the price band, the issue size works out to Rs 238.95 crore.

The company intends to use the proceeds from the offer towards funding working capital requirement of the company, pre-payment of outstanding amount of a debt, acquisitions and other strategic initiatives and general corporate purposes.

CL Educate focuses on diverse segments of education, and across learners of multiple age-groups. The company operates across a broad spectrum of segments in the education industry, including test preparation, K-12 education and vocational training.

CL Educate reported consolidated net profit of Rs 12.92 crore on net sales of Rs 153.16 crore in the six months ended 30 September 2016.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 21 2017. 16:42 IST