MT Educare Ltd, coaching service provider, is in talks with private equity companies and structured finance funds to raise as much Rs.150 cr, according to 2 people with direct knowledge of the development.
Earlier, the K-12 tutoring and test preparation company was looking to raise capital via a QIP - qualified institutional placement for its ‘Robomate+’ platform.
One of the people cited earlier said that the company has dropped its plans to raise money via QIP because of a valuation mismatch and is now in talks with private equity companies which included those who provide mezzanine financing for the same.
According to a Bombay Stock Exchange (BSE) filing by MT Educare, its ‘Robomate+’ mobile app has been downloaded over 500,000 times on Google’s Play Store as of 11th June.
In the month of December, MT Educare launched ‘Robomate+’ in coordination with the Global Education Trust, its corporate social responsibility (CSR) partner. The Robomate+ app provides recorded video lectures by experts to aid students revise and clear concepts by viewing lectures repeatedly.
Earlier this year, MT Educare had received an approval from its board to raise an unrevealed amount from qualified institutional investors.
Meanwhile, the company is raising Rs.15 cr in debt from Ambit Finvest and Reliance Financial. While Ambit Finvest shall lend Rs.10 cr, Reliance Financial shall give Rs.5 cr as a term loan for a period of a year, it said in a BSE disclosure last week. Mahesh Shetty, company’s promoter, has offered 3.25 million shares as a security towards the loans by way of pledge.
Founded in 1998, MT Educare, is a coaching services provider for students in the secondary and higher secondary school and also for those pursuing graduation in commerce, preparing for numerous competitive and chartered accountancy exams.For further information, visit MT Educare share price history.
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