BackCL Educate to launch IPO on 20 March
CL Educate, which owns the Career Launcher brand, has fixed a price band of Rs500-502 per share for the share sale
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Education services provider CL Educate Ltd on Tuesday said it will launch its initial public offering on 20 March.
CL Educate’s business comprises test preparation and training services under the Career Launcher brand; publishing and content development; vocational training programmes and operating K-12 schools under the Indus World Schools brand.
The company has fixed a price band of Rs500-502 per share for the share sale. The offer closes on 22 March. At the upper end of the price band, the company will raise Rs239 crore .
CL Educate’s IPO will have both a primary share sale component and an offer for sale. The company is backed by private equity investor Gaja Capital.
The company will sell 2.18 million new shares to raise ₹ 09.4 crore, while promoters and the company’s investors will sell around 2.57 million shares worth around ₹ 129.5 crore, at the upper end of the price band.
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According to the prospectus, the firm plans to use proceeds from the IPO to fund working capital needs, pre-pay debt and for acquisitions and other strategic initiatives.
The company has hired investment bank Kotak Mahindra Capital Co. Ltd to manage the IPO.
CL Educate will be the third IPO this month.
Last week, the initial public offer of D-Mart parent Avenue Supermarts to raise ₹ 1,870 crore witnessed a subscription of 104.48 times. Earlier, the IPO of Music Broadcast Ltd, a Jagran group firm that runs Radio City FM channel, was subscribed 39.45 times.
So far this year, three companies have raised over Rs3,600 crore through the IPO route. In 2016, 26 companies raised around Rs26,493 crore through IPOs, according to data from primary market tracker Prime Database.
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