IPO regime continues: CL Educate's IPO to hit the scenes

CL Educate,a company engaged in providing various educational products and services, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The issue opens on March 20, 2017 and concludes on March 22, 2017 providing three days for its subscription.

As part of this IPO, the company offers fresh issue of 47,60,000 equity shares of Rs 10 each, aggregating to Rs 238.95 crore. The stocks of the company with face value of Rs 10 each will be on offer in the price band of Rs 500 to Rs 502 per equity share. The minimum order quantity is one market lot comprising of 29 shares in each lot.

The company will divert the funds raised towards acquisitions and other strategic initiatives, financing its working capital requirements, acquisitions and other strategic initiatives, payment of its outstanding debt and other general corporate purposes.

On the financial front, CL Educate’s revenue increased 11.53 per cent to Rs 174 crore in FY16 as compared to previous financial year. The company’s net profit dropped 35.78 per cent to Rs 4.92 crore in FY16 on a yearly basis.