( Career Point Infosystem IPO )
Submitted To: Submitted By:
Nita Chakravarty Priyanka Agarwal
M.B.A. (Finance)
3rd Semester
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IPO (Initial Public Offering):
An initial public offering (IPO), referred simply as an "offering" or "flotation",
is when a company (called the issuer) issues common stock or shares to the
public for the first time. They are often issued by smaller, younger companies
seeking capital to expand, but can also be done by large privately-owned
companies looking to become publicly traded. In an IPO the issuer may obtain
the assistance of an underwriting firm, which helps it determine what type
of security to issue (common or preferred), best offering price and time to bring
it to market.
Career Point Infosystems IPO
Career point:
Career point company was incorporated as public limited company on March
31, 2000, under the Companies Act. The Promoter of Company, Mr. Pramod
Maheshwari has been in the business of tutoring for competitive entrance
examinations since 1993 and the business was being administered under
proprietorship firms of Mr. Pramod Maheshwari, Mr. Om Prakash Maheshwari
and Mr.Nawal Kishore Maheshwari, career point’s Promoters. However, during
Financial Year 2002, Promoters started undertaking tutoring services via
Franchisee Centres through Company. Subsequently, from April 1, 2006 they
also started providing tutoring services through Company Operated Training
Centres.
As of December 31, 2009 they had 14 Company Operated Training Centres and
18 Franchisee Centres and during the nine months period ending December 31,
2009 they have received 30,538 enrollments. Career Point have a team of 210
faculty members as on December 31, 2009 (excluding faculty members of
franchisees) comprising of graduates in engineering and science. They have
recently forayed into Education Consultancy and Management Services
('ECAMS'), catering to K-12 and Higher Education segments.
Now the company has decided to float its maiden IPO. Key features of the
proposed IPO are as under:
Activitis of the company:
Career Point Infosystems is one of the leading providers
of tutorialservices in India to high school and post high school students
for various competitive entrance examinations including All India
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Engineering Entrance Examination, Indian Institute of Technology –
Joint Entrance Examination and All India Pre-Medical and Pre-Dental
Test.
Promoters of the company:
Mr. Pramod Maheshwari
Mr. Om Prakash Maheshwari and
Mr. Nawal Kishore Maheshwari.
Company Finance:
Particulars For the year/period ended (Rs. in Millions)
30- 31- 31- 31- 31- 31-
Sep-09 Mar-09 Mar-08 Mar-07 Mar-06 Mar-05
Total Income 344.63 490.36 411.66 299.71 56.94 33.86
Profit After Tax (PAT) 103.32 162.41 154.53 120.10 14.73 11.76
Issue size:
The company is entering into primary market with an Initial Public Offer
(IPO) of Rs 115 crore. i.e. 3,208,907 Equity Shares at a face value of Rs
10 each
Issue date:
The IPO is opening on 16th Sep 2010 and the shares will be available for
subscription up to 21st Sep 2010. The premium of the issue will be
decided through a 100% Book Building Process. The price band for the
issue has been fixed at Rs.295 – Rs.310 Per Equity Share.
Market Lot :
20 Shares.
Minimum Order Quantity : 20 Shares
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Purpose:
The proceeds of this IPO will be used for constructing and developing an
integrated campus facility; expansion of classroom infrastructure and
office facility; and for acquisitions & other strategic initiatives.
Listing At :
The equity shares offered through the IPO are proposed to be listed on the
Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Book running lead managers
Centrum Capital Limited, one of the leading financial companies
located in Mumbai India having 800 plus employees. The company
offers innovative, customized and integrated financial solutions.
JM Financial Consultants Private Limited, the JM Financial
group’s Investment Banking arm, is one of India’s most respected
domestic investment banks located in Hyderabad India, having 1000
plus employees. They provides a wide range of services – raising
capital, mergers, acquisitions, financial advisory and private equity.
Career Point Infosystems Ltd IPO Grading / Rating:
IPO Grading is provided by SEBI approved rating agencies
including CRISIL, CARE and ICRA. IPO Grading is designed to
provide investors an independent, reliable and consistent assessment
of the fundamentals of IPO Issuer Companies.
CARE has assigned an IPO Grade 3 to Career Point Infosystems Ltd
IPO. This means as per CARE company has 'Average Fundamentals'.
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Bidding status(IPO Subscription details):
Number of Times Issue is Subscribed (BSE +
NSE)
Qualified Retail
Non
As on Date & Institutional Individual Employee
Institutiona
Time Buyers Investors Reservations
l Investors
(QIBs) (RIIs)
Shares Offered /
1,610,586 383,329 1,149,992 65,000
Reserved
Day 1 - Sep 16,
0.0000 0.1000 0.1200 0.0000
2010 17:00 IST
Day 2 - Sep 17,
2.1500 0.1400 0.4700 0.0800
2010 17:00 IST
Day 3 - Sep 20,
47.4500 6.2600 4.0500 0.4800
2010 17:00 IST
Day 4 - Sep 21,
47.4500 101.9300 31.7400 1.0700
2010 21:00 IST
Listing Day Trading Information:
BSE Scrip Code: 533260
NSE Symbol: CAREERP
Listing In: 'B' Group of Securities
BSE NSE
ISSUE PRICE 310.00 310.00
OPEN 461.00 461.10
LOW 450.00 436.10
HIGH 674.00 664.00
LAST TRADE 632.35 628.15
VOLUME 14,991,252 22,596,474
