The initial public offering (IPO) of CL Educate, which owns the Career Launcher brand, was subscribed 1.82 times on its concluding day with investors bidding for 60.57 lakh shares of the 33.3 lakh shares on offer. The company aims to raise R238 crore from the IPO, which has been fixed in a price band of R500 to R502 per equity share.
The issue received bids for 44.05 lakh shares from qualified institutional buyers, of 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 nearly 0.96 times or 16.04 lakh shares of the 16.66 lakh shares reserved. CL Educate, which operates across segments in the education industry including test preparation and vocational training, raised nearly R72 crore from anchor investors.
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.
The investors who were allotted shares in the pre-IPO placement include HDFC Trustee Company, Ocean Dial Gateway to India Mauritius Ltd, Ashoka Pte, Canara HSBC Oriental Bank of Commerce Life Insurance Company, HDFC Standard Life Insurance Co Ltd, Principal Trustee Company and ICICI Lombard General Insurance Company. Kotak Mahindra Capital is the book running lead manager to the issue.