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MT Educare Subscribed 0.64 Times On Day One

3/27/2012 8:26 AM ET

The initial public offer or IPO of MT Educare got subscribed by 0.64 times on the first day of the issue.

The company has received total bids for 69.86 lakh equity shares, compared to the issue size of 109.92 lakh equity shares of Rs.10 each at 16.00 hrs. IST Thursday, as per National Stock Exchange website.

The price band has been fixed between Rs.74 and Rs.80 apiece and the issue closes on June 27.

The private equity player Helix Investments invested around Rs.40 crore in MT Educare in 2007. He will partly exit through the IPO. Post the issue, Helix Investments' stake in the promoter company will scale down to 5.5 percent from 28 percent. The promoter Mahesh Shetty will hold a 43 percent stake in the company, post the dilution.

MT Educare, popularly known as Mahesh Tutorials, is an education support and private coaching provider to students from class 8 to class 12.

The company said the IPO proceeds would be utilized to set up new coaching centres at 20 new locations in Mumbai and Pune, to part finance the cost of construction of a pre-university college campus in Mangalore and Karnataka. Besides, new courses such as IIT JEE are also being planned. The company plans to establish itself in tier II and tier III cities as well.

Enam Securities is the book running lead manager to the issue.

by RTT Staff Writer

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