CL Educate will be the 3rd IPO this month.
The company has hired investment bank Kotak Mahindra Capital Co. Ltd to manage the IPO.
Last week, the IPOr of D-Mart parent Avenue Supermarts to raise Rs 1,870 crore witnessed a massive subscription of 104.48 times. And even IPO of Music Broadcast Ltd, A Jagran group firm that runs Radio City FM channel, was subscribed 39.45 times.
Music Broadcast on Friday 17 march 2017 saw stellar debut on BSE, as its shares got listed at a 26.13 per cent premium at Rs 420 compared with the issue price of Rs 333 a piece.
So far this year, three companies have raised over Rs 3,600 crore through the IPO route. In 2016, 26 companies raised around Rs26,493 crore through IPOs
Main Purpose of the Issue :-
1. To boost Funding of Working Capital requirement in the Company:
2. Looking out for Inorganic Growth through Mergers, Acquisitions and other strategic initiatives;
3. Getting to rid from Pre payment of outstanding amount of a debt.
Issue Open: Mar 20, 2017 – Mar 22, 2017
Issue Type: Book Built Issue IPO
Issue Size: 4,760,000 Equity Shares
Face Value: Rs 10 Per Equity Share
Issue Price: Rs. 500 – Rs. 502 Per Equity Share
Minimum Order Quantity: 29 Shares
Listing At: Bombay Stock Exchange and National Stock Exchange.
CL Educate, the latest entrant in the initial public offering (IPO) arena aims to raise Rs 239 crore. The issue will open on March 20 and close on March 22 with a price band of Rs 500-502. The company operates segments in the education sector, which includes test preparation, K-12 and vocational training.
Lot of pessimism is seen in the minds of retail investors as mixed reviews are coming from Market Analyst and Brokerage Houses about the issue. Analyst are concerned over higher valuations for this stock and also limited upside after listing. “It is one of the leading players in the education provider space. However, it is available at 27 times FY17 estimated earnings per share (EPS) on an annualised basis which is higher compared to its peers such as MT Educare
Its financial performance of the firm has been struggling in the past 4-5 years, where profits have been low and fluctuating. Moreover, more than 45 percent of the company’s revenue is from test preparation and training center business.These include corporate training, vocational training under government schemes and advisory and research incubation services to educational institutions, which has resulted into stretched working capital cycle.
The research firm highlights on the positives of pan-India presence, reputed courses, track record of successful inorganic expansion along with strong brand equity. Overall, the private coaching sector is expected to grow at over 15 per cent each year. The company is positioned well in the current scenario.
Career Launcher Parent Eyes Rs 703-Crore Valuation In Intial Public Offering.