CL Educate and Shankara Building Products are ready to hit the market this week with their initial public offerings to raise a total of Rs 584 crore. The bidding for the CL Educate issue will start on March 20 and close on March 22 while Shankara Building Products' IPO will open for public subscription on March 22 and go on till March 24.
The shares of the companies are proposed to be listed on BSE and NSE. This follows public offers from Music Broadcast, a Jagran group entity that operates Radio City FM channel, and Avenue Supermarts, the operator of retail chain D-Mart, earlier this month.
So far this year, Music Broadcast and leading stock exchange BSE have got listed. Many companies, including the BSE-promoted CDSL, are readying their IPOs too. 2016 saw hectic fund-raising activity in the IPO space as a total of 26 firms mobilised over Rs 26,000 crore through this route, making it the best since 2010.
CL Educate's initial public offer (IPO) comprises fresh issue of 21,80,119 shares and an offer for sale of up to 25,79,881 scrips by the existing shareholders. It has fixed a price band of Rs 500-502. At the upper end of the price band, the public will garner Rs 239 crore. Last week, the company had raised Rs 72 crore from anchor investors.
Proceeds of the issue will be used for acquisitions and other strategic initiatives and repayment of loans to fund working capital requirements and for other general corporate purposes, according to draft papers. Bengaluru-based retailer Shankara Building Products' public issue consists of fresh issuance of shares worth Rs 45 crore and an offer for sale of 6,521,740 scrips by the existing shareholders.