CL Educate are provider of education products with a presence across the education value chain. They provide various education products and services. They are going to introduce their initial public offer which will hit the primary market on
20th March 2017 and closes on 22nd March 2017. The company aims to raise around Rs 238.95 crore by offering shares at Rs.500-Rs.502 per Equity Share.
As per the firm’s director, they plans to come out with a public issue of up to 46,90,533 equity shares. This includes a fresh issue of 20,60,652 shares and an offer for sale of up to 26,29,881 scrips by existing shareholders in December
CL Educate was incorporated in New Delhi as ‘Career Launcher (India) Private Limited’ on 25th April, 1996. They are an integrated technology-enabled provider of education products, services, content and infrastructure. They have diversified their operations across six business segments, spanning the education value chain:
- Test preparation and training services, generally referred to as “test prep”, conducted under brand Career Launcher- They offer reputed test prep courses for MBA, Banking and Staff Selection Commission and Law entrance examinations, as well as courses for Engineering, Medical, Civil Services, Grade VIII-XII Tuitions and International Education (GRE, GMAT and SAT)
- Publishing and content development, conducted under brand GK Publications- They publish niche test prep titles for popular professional and entrance examinations in India, including for Engineering, GATE, Civil Services and Banking and SCC entrances.
- Integrated business, marketing and sales services for corporates, conducted under brand Kestone, including event management, marketing support (including digital marketing support), customer engagement, managed manpower and training services- They provide integrated business, marketing and sales services for corporates, including event management, marketing support (including digital marketing support), customer engagement, managed manpower and training services
- Vocational training programs implemented by them under Government schemes in various States across India – vocational training programs, as an implementation agency, under project tenders.
- Integrated solutions to educational institutions and universities, including business advisory and outreach support services, under brand CL Media, as well as research incubation and support services conducted under the brand Accendere- It’s with the objective of facilitating such educational institutions and universities in improving their student intake and graduate outcomes.
- K-12 schools operated under brand Indus World Schools- They provide infrastructure and education services and license their brand Indus World School, to K-12 schools providing English-medium education.
As on September 30, 2016, they had a network of 151 test prep centers in 87 cities across India, with 45 owned test prep centers (of which three were temporary Smart Career Centers) and 106 test prep centers operating under a partnership model. They had a network of 635 dealers and distributors, for the sale of titles under brand GK Publications. They had 2,654 and 2,671 students, respectively, were enrolled in eight Indus World Schools, across the States of Punjab, Delhi NCR, Madhya Pradesh, Chhattisgarh, Maharashtra and Haryana. Along with that they had 6,663 enrolments in Government vocational training programs of varying durations, across States including Gujarat, Jharkhand, Chhattisgarh, Madhya Pradesh, Odisha and Uttar Pradesh.
They believe that the following are their core competitive strengths:
- Diversified and integrated education products, services, content and infrastructure provider, with panIndia presence and a focus on knowledge-creation
- Reputed courses, particularly in the aptitude based test prep segment
- Asset-light, technology-enabled business model
- Strong brand equity
- Track record of successful inorganic expansion
- Professionally qualified, experienced and entrepreneurial management team, and quality human capital.
Their aim is to strengthen their market position and brand recognition, by continuing to pursue the following growth strategies:
- Expand geographical footprint and increase test prep center utilization across India, in their test prep business
- Develop and derive synergies from publishing and content development business
- Diversify business into the B2BC spectrum of the education sector
- Develop and implement innovative digital business initiatives
- Selectively capitalize on opportunities in the vocational training business.
Objects of the Issue:
The object of the issue are:
- Funding Working Capital requirement of the Company:
2. Acquisitions and other strategic initiatives;
3. Pre payment of outstanding amount of a debt; and
4. General corporate purposes.
In last 5 years, their revenue grows at 14% CAGR. Compared to other pears like Career Point, the issue is aggressively priced.
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