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Unlike the stellar listing day of recent market entrants Avenue Supermarts, BSE and Music Broadcast, it was a rather disappointing day for investors in CL Educate.
Shares of CL Educate ended at ₹422.10 on the NSE on Friday, notching up a loss of 15.9 per cent (or ₹80) over the issue price of ₹502. Intraday, the stock touched a low of ₹402. On the BSE, it dipped below the ₹400-mark, to record a low of ₹398.
The company’s IPO was subscribed by nearly two times last week, with the QIB portion garnering a response of 3.65 times and retail investors’ 1.63 times the shares earmarked for them. The non-institutional investor portion was subscribed only 21 per cent.
Earlier in 2016, Quick Heal technologies and Healthcare Global Enterprises had closed with a discount of over 20 per cent on their listing day, according to data provided by Capitaline. But they had opened at only a minor discount of 4-5 percent to their issue price.
“The education model in India is yet to mature and that could be one of the reasons for this disappointing listing. Previous investments in education companies like Educomp and Treehouse had been a disappointing experience for investors. Even more established education names like Career Point and MT Educare have failed to excite the stock markets after listing,” pointed out Angel Broking.
Most analysts and market experts had found the issue richly priced.
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