MT Educare files IPO papers with SEBI

Coaching services provider MT Educare has filed draft red herring prospectus (DRHP) with market regulator SEBI for public issue of equity shares.

It consists of fresh issue of shares aggregating to Rs 35 crore and an offer for sale of up to 80 lakh shares by Helix Investments Company.

It is an education support and coaching services provider for students in the secondary and higher secondary school and for students pursuing graduation degree in commerce, preparing for various competitive examinations and undertaking chartered accountancy examinations.

Net proceeds (through fresh issue) are proposed to be utilised for partly financing construction of a PUC campus in Karnataka, which includes the cost of acquisition of land; and establishing new coaching centres at 20 locations.

For the period of nine months ended on December 31, 2010, it has reported a net profit of Rs 9.63 crore on total income of Rs 85.68 crore.

Enam Securities Pvt Ltd is the book running lead manager to the issue.