CL Educate Ltd (CLE) is a diversified and integrated technology-enabled provider of education products, services, content and infrastructure, with a presence across the education value chain. It has diversified its operations across six business segments, spanning the education value chain 1. Test preparation and training services, generally referred to as “test prep”, conducted under our well recognized brand Career Launcher; 2. Publishing and content development, conducted under our brand GK Publications; 3. Integrated business, marketing and sales services for corporate, conducted under our brand Kestone, including event management, marketing support (including digital marketing support), customer engagement, managed manpower and training services; 4. Vocational training programs implemented by us under Government schemes in various States across India; 5. To part finance its needs for pre-payment of debt, working capital, general corpus fund and strategic acquisition plan, the company is coming out with a maiden IPO of 2180119 equity share of Rs. 10 each as well as offer for sale of 2579881 shares. The issue is via book building route with a price band of Rs. 500-502 per share. Total issue is for 4760000 shares to mobilize approx Rs. 238.95 crore (based on higher price band). 1666000 shares are reserved for retail category of investors. Issue opens for subscription on 20.03.17 and will close on 22.03.17. Minimum application is to be made for 29 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE and NSE. Being issue under Rs. 250 crore, it will be listed in “T” group initially that may keep speculators away. From May 1996 to Oct. 2000 it issued initial equity at par and also a bonus in the ratio of 17 for 2 in August 2000. From June 2001 to October 2016 it issued fresh equity in a price range of Rs. 150 to Rs. 1000 (for a fv of Rs. 10) and bonus issues in the ratio of 6 for 1 (Sept 2004) and 1 for 2 (Feb 2007). Post issue its current paid up equity capital of Rs.11.98 crore will stand enhanced to Rs. 14.16 cr. Kotak Mahindra Capital Co. Ltd is the sole BRLM and Karvy Computershare Pvt Ltd is the registrar to the issue. Conclusion: Education sector is attracting fancy off late and hence, investors may consider investment for medium to long term.
(The author is SEBI registered Research Analyst-Mumbai).
(Email: dilip_davda@rediffmail.com)
