Do not compare CL edu to Sheela foam...Have some basic knowledge of balance sheet and business ....Also sheela foam is a reputed brand in India hence due to fair valuation it gave 40 percent gains on listing..Forget C L edu doing the same....Har din kheer nahi banti...
It will be a big surprise if C L edu gives listing gains. People asking for GMP should have known the business model of this company. If opens in green by chance then sell immediately.. look the past for this sector and you will get the answer..Eg. Educomp, edserve or everron....Bhai lalach buri bala hai....
The overall response to the issue was a low key on primarily two grounds. The first is that the company had entered into owning schools and a college which they have recognised as a folly and are in the process of disposing off. This has affected their returns from the capital employed perspective and is hurting the performance of the company and hence the valuations look extremely stretched. Second the last few companies that are in the sector and are listed have done quite badly and have not generated returns for the investors. This leads to a lack of interest in the sector and explains the poor response to the issue. One hopes that the sector and this company in particular does help restore confidence in education.
296. Jainvipul| Link| Bookmark|
March 26, 2017 12:37:14 PM
Top Contributor (400+ Posts, 300+ Likes)
Even if cl open at discount it will go up on listing day as sheela foam ,(not with that momentum) because no pressure of selling so retail applicants stay tight and place order for sell not below 600.
If one goes through the thread of this forum the range of GMP for CL Edu ranges between 95-140. I have gone through the prospectus and have seen the IPO market since 1988 when the fly by night operators used to come for Rs 3 cr IPO. Now those are in SME segment with Rs 25 cr. Here on the main board there are bigger crooks.
I feel the GMP threads are posted by the "Interested Parties". Only a few random posts of Rs 100 ish GMP and a few trades done are enough for the IPO to sail through as too much money is sloshing around.
I feel this is one of the weakest IPO''s. I would love to go wrong and feel the price would be below 25% of the offer price within 3 months. Best of luck guys with your hard earned money. There''s no free lunch in life.
GMP pertaiins to pee listing. If music broadband goes below issue price after listing doesn''t matter. But in MBL case GMP was about Rs 100 and listed in BSE at 420 about Rs90/-. More or less same.