<article>In the worst stock market debut for an Indian company in a year, shares of <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=cl+educate">CL Educate Ltd </a>opened 20% below their issue price on Friday, before recouping slightly to close 17% lower.</article>

In the worst stock market debut for an Indian company in a year, shares of <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=cl+educate">CL Educate Ltd </a>opened 20% below their issue price on Friday, before recouping slightly to close 17% lower.
CL Educate shares, which opened the day at Rs 398—also the day’s low for the stock—against its issue price of Rs 502, closed 16.75% lower at Rs 417.90, the day’s high. The company’s Rs239-crore initial public offer (IPO) had received a subscription of 1.9 times when it closed last month.
On Friday, India’s benchmark 30-share Sensex shed 0.09% to close at 29,620.50 points.
It was the biggest debut day loss since <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=healthcare+global">Healthcare Global Enterprises Ltd</a> closed 21.58% below its issue price by the end of its first day on the bourses on 30 March 2016.
“Education sector stocks are not the darlings of investors. Most of the stocks in this sector are not doing well,” said Ravi Sundar Muthukrishnan, co-head of research,<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=icici"> ICICI Securities Ltd.</a>
The company went public at a time when investors have turned away from companies in the education sector.
Muthukrishnan said that For CL Edcuate in particular, the IPO price was very ambitious for the type of business trajectory the company has, and the valuations were not justified.
“The most lucrative business for CL Educate is coaching for competitive exams. That is a lot of competition within that space, which could squeeze the margins even further,” added Muthukrishnan.
The Delhi-based company is backed by private equity investor Gaja Capital. CL Educate’s business comprises test preparation and training services under the Career Launcher brand and publishing and content development. Its business also includes vocational training programmes and operating K-12 schools under the Indus World School brand.
Also read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/india-cl-educate-ipo-subscribed-0-37-times-on-day-1-67999/">India: CL Educate IPO subscribed 0.37 times on Day 1</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/india-cl-educate-picks-51-stake-in-edtech-start-up-accendere-12092/">India: CL Educate picks 51% stake in EdTech start-up Accendere</a>
This story was first published on <a style="color: #000080;" href="http://www.livemint.com/Money/G4KMYWF1Ce5lolMbiSBiCL/CL-Educate-shares-fall-20-on-stock-market-debut.html">Livemint</a>

India: CL Educate shares fall nearly 17% on market debut

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India: CL Educate shares fall nearly 17% on market debut

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