Wednesday, March 15, 2017

IPO ANALYSIS : CL EDUCATE LTD - AVOID


ISSUE DETAILS:


Issue opens / closes on
20-03 /22-03-2017
Promoters
SATYA NARAYANAN R, GAUTAM PURI, NIKHIL MAHAJAN, R. SHIVA KUMAR, SREENIVASAN .R, SUJIT BHATTACHARYYA AND BILAKES CONSULTING PRIVATE LIMITED
Business
Diversified and integrated technology-enabled provider of education products, services.


ISSUE SIZE
47,60,000 equity shares
FACE VALUE
Rs 10
PRICE Band
Rs 500-502
LISTINGS
Bse, Nse
BRLMs
Kotak mahindra Capital Company
REGISTRAR
Karvy

Business:


CL Educate  focuses on diverse segments of education, and across learners of multiple age-groups. Led by a team of highly qualified professionals including IIT-IIM alumni, with a passion for excellence in education.
In the past 20 years, the CL brand has diversified and established itself as a recognized brand in education sector. We operate across a broad spectrum of segments in the education industry, including test preparation, K-12 education and vocational training.
As on September 30, 2015, CL had 146 test-prep centers spread over 86 cities in India, 8 K-12 schools spread across 6 cities & 28 vocational training centers and offices.
CL Educate offers test preparation courses and services under the Career Launcher brand, publishing and content development services under the brand GK Publications and event management, marketing support, customer engagement, and managed manpower and training services.


     Financials:

                   (Rs in crores)



31-12-2016
(9 months)
31-03-2016
31-03-2015
Capital

11.93
11.64
Revenue

283
274
Net profit

21
21
EPS (diluted)

18.08
19.30





Valuation and recommendations:

The offer is made around on the expanded capital, on its FY18 earnings, which is very expensive.

Avoid the IPO.

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