India's CL Educate refiles for IPO, Gaja to part-exit

The company will sell a total of 4.7 million shares in the offering, comprising 2.1 million new shares and 2.6 million held by existing shareholders, according to the prospectus. Gaja, which holds a 15% stake in the company with 1.8 million shares, plans to sell 605,000 shares in the offering.

Pricing has not been announced, but in a letter to shareholders last month the company said it hoped to raise INR 3.5 billion ($53 million). Of this, INR525 million will be used for working capital, INR194 million for loan repayment, INR250 million for acquisitions and other initiatives, and the rest for general corporate purposes.

CL Educate previously filed for an IPO in 2014, in which the company would raise INR2.4 billion and Gaja would part-exit. It shelved those plans last year when attempting to acquire education start-up Accendere Knowledge Management Services, which required additional PE capital. Since then, it has raised an additional $7 million from the International Finance Corporation.

Founded in 1996, CL Educate manages the test preparation service Career Launcher, along with publisher GK Publications, K-12 private school chain Indus World Schools, vocational training programs, and business advisory and outreach support services to educational institutions and universities. For the six months ended September 2015, the core test prep business had 50,000 enrolments, while the publishing division sold over 590,000 copies in the same period and 1.19 million copies in fiscal year 2015.

For the year ended March 2015, the company reported INR1.6 billion in revenue, up from INR1.2 billion the year before. Net profit over the same period rose from INR39 million to INR98 million.

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• Topics
• South Asia
• Consumer
• IPO
• India
• Gaja Capital Partners
• Education
• Exit