CL Educate Ltd IPO Review – Analytical Review

CL Educate IPO Review

CL Educate Ltd IPO Review and what features you need to consider?

Issue Details:
The issue opens: March 20, 2017
Issue Closes: March 22, 2017
Number of shares offered: 47,60,000
IPO size: Rs. 300 crores (approx)
Face value: Rs. 10
Issue price: Rs. 500 – Rs. 502 per share
Minimum order quantity: 29 shares
Listing: BSE / NSE

CL Educare Ltd IPO Allotment Details:

Retail allocation: 35%
Allotment date: 29 March 2017
Share transfer to demat: 30 March 2017
Listing date: 31 March 2017

Some details about the company:

We also know the company CL Educate in the name of Career Launcher. The company provides various educational products and services. They offer services in educational studies, training program, vocational training. The company also offers test preparation courses and services under the CAREER LAUNCHER program. The company is the owner of the publishing and content development services brand GK Publications. They are also the owner of brand name Keystone dealing in marketing support, customer engagement, etc.

CL Educate Ltd 1

Now let’s have an eye on the financial data of the company. See the image below:

In FY2012 the company posted total revenue of Rs. 102.1 crores while they were in loss of 5.4 crores while in FY2015 the company has posted total revenue of 155.8 crores against a profit of 7.7 crores. In FY2016 the revenue increased to 173.8 crores but profit reduced to 4.9 crores. maybe this is due to the increase of debt in the balance sheet. Now if you see the 6 months performance of FY2017 the company has increased its profitability by a large extent.

What is the objective of the CL Educate Ltd IPO?

1) Funding working capital requirement of the company.
2) Acquisitions and other strategic initiatives.
3) Pre-payment of outstanding debts.
4) General corporate purposes.

CL Educate Ltd IPO Review – Should you invest in it?

Now the market is at its top, many companies are coming up with IPOs and IPOs are being over-subscribed too. So, we cant see big growth in the balance sheet of the company, but as the company is telling that they will reduce debt, if they can reduce debt profit will automatically increase. Now hopefully the IPO will be marginally over-subscribed and subscribers can see some listing gain too. I suggest you be cautious as the IPO likely not going to be a star performer as this one: Avenue Supermarts IPO Date Declared – Should You Invest In It?

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Author: Indrajit Mukherjee

Indrajit is a professional blogger and trading system developer. Amibroker expert, Wordpress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.

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