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Gaja Capital-backed CL Educate’s IPO covered 36% on first day

The initial public offering of education services company CL Educate Ltd, which is backed by private equity firm Gaja Capital, crossed the one-third mark on the first day of the issue on Monday.

The offering of 3.33 million shares, excluding anchor allotment, received bids for nearly 1.22 million shares, or 36% of the total, stock-exchange data showed.

Institutional investors led the bidding as their quota was fully covered. The retail investors’ portion was covered about 14% while the quota for non-institutional investors comprising corporate bodies and wealthy individuals was subscribed 0.03%.

New Delhi-based CL Educate is the first education services company to float an IPO for five years, after MT Educare Ltd in March 2012.

On Friday, CL Educate had raised Rs 71.68 crore ($10.95 million) by selling shares to anchor investors.

The education services company, best known for its test prep brand Career Launcher, allotted nearly 1.43 million shares to nine institutional investors at the upper end of the Rs 500-502 price band.

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