CL Educate on Friday made a poor debut on the bourses. The stock got listed on NSE at `402, 20% below its issue price of `502.
CL Educate on Friday made a poor debut on the bourses. The stock got listed on NSE at `402, 20% below its issue price of `502. This is the first issue to open at a discount to the issue price after Varun Beverages, which had debuted at a discount in November 2016. CL Educate ended the session at `422.10. Post listing, the stock commands a market capitalisation of `591.88 crore. The initial public offering (IPO) of CL Educate was subscribed by 1.82 times on the final day of its issue. The issue received bids for 44.05 lakh shares against their quota of 9.52 lakh shares.
High net worth individuals bid for 47,386 shares of the 7.14 lakh shares reserved for them bidding 0.07 times. Retail investors bid for 0.96 times or 16.04 lakh shares of the 16.66 lakh shares reserved. CL Educate raised `71.69 crore from anchor investors ahead of its IPO.
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The company sold more than 14.28 lakh shares to anchor investors at a rate of `502 per piece. The investors who were allotted shares in the pre-IPO placement include HDFC Trustee Company, Ocean Dial Gateway to India Mauritius, Ashoka, Canara HSBC Oriental Bank of Commerce Life Insurance Company, HDFC Standard Life Insurance, Principal Trustee Company and ICICI Lombard General Insurance Company.
Kotak Mahindra Capital was the book running lead manager to the issue. CL Educate runs test preparation and training services under the Career Launcher brand.