( Career Point Infosystem IPO )

Submitted To: Submitted By:Nita Chakravarty Priyanka Agarwal

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M.B.A. (Finance) 3rd SemesterIPO (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:

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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 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 MaheshwariMr. Om Prakash Maheshwari andMr. Nawal Kishore Maheshwari.

Company Finance:

Particulars For the year/period ended (Rs. in Millions) 30-

Sep-0931-

Mar-0931-

Mar-0831-

Mar-0731-

Mar-0631-

Mar-05

Total Income 344.63 490.36 411.66 299.71 56.94 33.86Profit 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)

As on Date & Time

Qualified Institutional

Buyers (QIBs)

Non Institutional Investors

Retail Individual Investors

(RIIs)

Employee Reservations

Shares Offered / Reserved

 1,610,586   383,329   1,149,992   65,000 

 Day 1 - Sep 16, 2010 17:00 IST

 0.0000   0.1000   0.1200   0.0000 

 Day 2 - Sep 17, 2010 17:00 IST

 2.1500   0.1400   0.4700   0.0800 

 Day 3 - Sep 20, 2010 17:00 IST

 47.4500   6.2600   4.0500   0.4800 

 Day 4 - Sep 21, 2010 21:00 IST

 47.4500   101.9300   31.7400   1.0700 

Listing Day Trading Information:

BSE Scrip Code: 533260

NSE Symbol: CAREERP

Listing In: 'B' Group of Securities

BSE NSEISSUE PRICE 310.00 310.00OPEN 461.00 461.10LOW 450.00 436.10HIGH 674.00 664.00LAST TRADE 632.35 628.15VOLUME 14,991,252 22,596,474

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