The simultaneous offer with the fresh issue component of 21.80 lakh shares and an offer for sale of 25.80 lakh shares from CL Educate was subscribed. The price band was Rs 500-502. The issue was subscribed 1.90 times with the QIB portion subscribed 3.65 times, HNI undersubscribed at a mere 0.21 times and retail at 1.63 times. There were a total of 73,000 applications which means that the issue on number of lots was subscribed 1.33 times.

Earlier the company had allotted 14.28 lakh shares to nine anchor investors comprising of 17 entities. Four anchor investors each have been allotted 1,99,230 shares or 13.95% of the anchor portion.

The overall response to the issue was a low key on primarily two grounds. The first is that the company had entered into owning schools and a college which they have recognised as a folly and are in the process of disposing off. This has affected their returns from the capital employed perspective and is hurting the performance of the company and hence the valuations look extremely stretched. Second the last few companies that are in the sector and are listed have done quite badly and have not generated returns for the investors. This leads to a lack of interest in the sector and explains the poor response to the issue. One hopes that the sector and this company in particular does help restore confidence in education.