Saturday, March 24, 2012

MT Educare IPO

MT Educare, an education support and coaching services provider, is entering capital market with an IPO  consisting fresh issue of Rs 35 crore and an offer for sale of up to 80 lakh equity shares by Helix Investments Company. The company provides coaching services to students in the secondary, higher secondary school and pursuing graduation degree in commerce, preparing for various competitive examinations and undertaking chartered accountancy examinations.

MT Educare has serviced over 58300 students in the year 2010-2011 and has over 1400 faculty and 188 centres in 110 locations. MT Educare is one of the leading coaching services providers in Maharashtra, with primary operations in Mumbai with 138 Coaching Centers in 85 locations as on May 15, 2011. Additionally, they have recently started operations at six locations in New Delhi and Gurgaon under the brand "Study Mate – Powered by MT Educare" through HT Learning Centres Limited.

The IPO shall open on 27 March, 2012 and shall close on 29 March, 2012. The company has fixed a price band of Rs 74 to Rs 80 per share.

The company will utilize the proceeds of the IPO for partially financing the cost of construction of a PUC campus in Karnataka (including cost of acquisition of land) and establishing new coaching centers at 20 locations.

Equity shares offered by the company are proposed to be listed on the BSE and the NSE.

Enam Securities Private Limited is the book running lead manager to the issue and Link Intime India Private Limited is the registrar.

Recommendation:

CRISIL has assigned Grade 4 to the IPO indicating above average fundamentals. We would recommend investors to invest at the lower band of the IPO with a long term view. However, do en-cash listing gains, if significant.

Subscription:

MT Educare IPO got over 4.8 times subscribed after a slow opening.

At the close of the IPO,
QII segment got subscribed 6.01 times
NII segment got subscribed 8 times
Retail segment got subscribed 2.17 times

Allotment:

Click here to check MT Educare IPO Allotment status!

Listing:

MT Educare IPO got listed on 12 April, 2012. The stock opened at Rs 86.05 and closed the day at Rs 90.35, rising 12.94% over issue price of Rs 80 a share.