MT Educare IPO subscribed 65% on Day 1

The initial public offer (IPO) of coaching services provider MT Educare was subscribed 64.95% on the first day of the issue today.

The IPO attracted bids for about 7.1 million shares, against over 10 million shares on offer, creating demand worth Rs 57 crore, by 1825 hours today.

The company's initial public offer to raise a total of up to Rs 99 crore will close on March 29. Shares have been offered in the price band of Rs 74-80 per equity share.

MT Educare yesterday allotted 1.74 million shares worth Rs 12.86 crore to two anchor investors -- Nomura Trust and Birla Sun Life.

In a meeting of the Board of Directors held yesterday, the company allotted the shares to the anchor investors at a price of Rs 74 apiece, MT Educare had said in a filing to the Bombay Stock Exchange.

The company is engaged in providing coaching services to students in the secondary, higher secondary and graduation levels in commerce faculty.

Funds raised through this IPO will be used for partially financing the cost of construction of a pre-university college campus at Mangalore in Karnataka and establishing new coaching centres at 20 locations.