The IPO subscribed 1.9 times
The qualified institutional buyers (QIBs) category of initial public offer (IPO) of CL Educate was subscribed 3.65 times. Non institutional investors category was subscribed 0.21 times and retail individual investors (RIIs) category was subscribed 1.63 times. Overall, the IPO was subscribed 1.9 times.
The IPO of CL Educate received bids for 63.34 lakh shares compared to 33.32 lakh shares on offer. The IPO of upto 47.6 lakh shares of CL Educate had opened for bidding on 20 March 2017, and closed on 22 March 2017.
The offer comprised of a fresh issue of 21.8 lakh equity shares by the company and an offer for sale (OFS) of upto 25.79 lakh equity shares by the selling shareholders, including upto 9.74 lakh equity shares by certain promoters and members of the promoter group. The offer constituted 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 shares 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 worked out to Rs 238 crore. At the higher end of the price band, the issue size worked 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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