CL Educate IPO Fully Subscribed
The issue received 102 percent demand for the shares offering, as per NSE data.
CL Educate Ltd.’s initial public offering (IPO) was oversubscribed on the last day of the offer. The educational training company operates a host of tutorial centres like Career Launcher.
Overall the offer was subscribed 1.9 times, according to National Stock Exchange data as of 5 pm on Wednesday. The segment reserved for qualified institutional buyers (QIBs) was subscribed 3.65 times, while that of non-institutional investors was subscribed 21 percent. The retail investors category was subscribed 1.6 times
CL Educate, which operates across segments in the education industry, including test preparation and vocational training, raised nearly Rs 72 crore from anchor investors last week. It has fixed a price band of Rs 500-502 for the IPO, which opened on Monday. At the upper end, the offer can fetch up to Rs 239 crore.
The IPO comprises a fresh issue of 21.80 lakh shares and offer for sale of up to 25.79 lakh shares.
Proceeds of the issue will be used for acquisitions and other strategic initiatives, repayment of loans, meeting working capital requirements and other general corporate purposes, as per the draft papers.
Kotak Mahindra Capital Company is the book running lead manager for the offer.
"The response to the IPO from retail investors was very encouraging and we received bids from very high quality institutional investors," V Jayasankar, Senior Executive Director and Head (Equity Capital Markets) at Kotak Investment Banking said.
The IPO received bids for 34,07,442 shares against the total issue size of 33,32,000 shares, data available with the NSE till 11:00 a.m. showed. The segment reserved for qualified institutional buyers (QIBs) was subscribed 2.54 times, while that of non-institutional investors was subscribed 4 percent. Retail investors category received 57 percent subscription.
Also Read: All You Need To Know About CL Educate’s IPO
CL Educate, which operates across segments in the education industry including test preparation and vocational training, last week raised nearly Rs 72 crore from anchor investors. It has fixed a price band of Rs 500-502 for the IPO.
At the upper end of the price band, the offer can fetch up to Rs 239 crore. The offer will close on Wednesday.
The IPO comprises a fresh issue of 21.80 lakh shares and offer for sale of up to 25.79 lakh shares.
Proceeds of the issue will be used for acquisitions and other strategic initiatives, repayment of loans, fund working capital requirements and other general corporate purposes, as per the draft papers.
(With inputs from PTI)
