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MT Educare allots 7.38 lakh shares to two anchor investors-news17032012

Tuesday, March 27, 2012

A day ahead of its estimated Rs99-crore maiden public offer, coaching services provider MT Educare on Monday (March 27, 2012) allotted 17.38 lakh shares worth Rs12.86 crore to two anchor investors -- Nomura Trust and Birla Sun Life.


In a meeting of the Board of Directors held Monday (March 27, 2012), the company allotted the shares to the anchor investors at a price of Rs74 apiece, MT Educare said.

Out of the total allotted shares, 10.62 lakh equity shares have been given to The Nomura Trust and Banking Co Ltd for Rs7.86 crore, it added.

The rest 6.76 lakh shares have been allotted to various funds of Birla Sun Life Trustee Company Pvt Ltd for a total consideration of Rs5 crore.

The company's initial public offer ( IPO) to raise a total of up to Rs99 crore will open tomorrow for subscription and will close on March 29. The price band of the issue has been fixed at Rs74-Rs80 per equity share.

While the company will enter the capital market with a fresh issue of shares for about Rs35 crore, private equity fund Helix Investments will offload 80 lakh shares worth up to Rs64 crore through the offer.

The company is engaged in providing coaching services to students in the secondary, higher secondary and graduation levels in commerce faculty.

Funds raised through this IPO will be used for partially financing the cost of construction of a pre-university college campus at Mangalore in Karnataka and establishing new coaching centres at 20 locations.
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