MT Educare IPO subscribed 4.44 times

Gets bids for 4.88 crore shares The initial public offer (IPO) of MT Educare, an education support and coaching services provider, was subscribed 4.44 times by 16:00 IST on the last day of bidding for the issue today, 29 March 2012. The IPO received bids for 4.88 crore shares. The price band for the issue was fixed at Rs 74-80 a share. The IPO comprised of fresh issue of Rs 35 crore and an offer for sale of up to 80 lakh equity shares by Helix Investments Company which is a private equity (PE) fund. Helix had pumped in Rs 32.80 crore in MT Educare in 2007. MT Educare on Monday, 26 March 2012, allotted 17.37 lakh shares to two anchor investors -- Nomura Trust and Birla Sun Life Mutual Fund at Rs 74 a share, at the bottom end of the Rs 74-80 per share IPO price band. MT Educare, promoted by Mahesh R. Shetty, is one of the leading coaching services providers in Maharashtra, with primary operations in Mumbai. The company is an education support and coaching services provider for students in the secondary and higher secondary school and for students pursuing graduation degree in commerce, preparing for various competitive examinations and undertaking chartered accountancy examinations. Out of the total proceeds of the fresh share issue amounting to Rs 35 crore, Rs 20 crore is required for part financing the cost of construction of a pre-university college (PUC) campus at Mangalore. The company will spend Rs 5 crore for establishing new coaching centres at 20 locations. The remaining funds are required for general corporate purpose.