MT Educare, an education service provider, plans to raise close to Rs 35 crore by selling its shares through an initial public offer (IPO). The company has fixed the price band at Rs 74-80 per share for its eight million share sale offer.
Helix Investments, a private equity fund that owns 28.8% in the company, will reduce its holdings to 5.5% by selling a part of its stake in the IPO.
The issue will open on March 27 and close two days later. The shares will be listed on both Bombay Stock Exchange and National Stock Exchange. Enam Securities is the arranger for this issue.
"Through the IPO, we aim to expand our existing network and launch more coaching centres," Anup Gandhi, chief financial officer of MT Educare, said. The new coaching centres will be opened in four states - Karnataka, Maharashtra, Tamil Nadu and Gujarat. The company, led by Mahesh Shetty, currently has 188 coaching centres in these four states.
In addition, the funds will also be used for running the company's pre-university college in Mangalore. The company has also diversified into pre-school and day care services.
MT Educare will be the second education service provider to launch an IPO since 2010. Career Point Infosystems had raised Rs 115 crore through a similar share sale offer in September, 2010.
