CL Educate raises INR 10.5cr by selling real estate assets
CL Educate, the owner of the testprep brand — Career Launcher, said that it has sold a couple of plots of land in Faridabad and Amritsar to raise over INR 10.5 crores.
The Indian edtech and martech company said that over the last few years, it has been looking to exit asset heavy businesses, which includes its K-12 business.
As part of this strategy, CL Educate is seeking to convert its real estate bank, that has a value of INR 65-70 crores into cash in order to redeploy it into its main business.
With the markets getting back on track this year with the easing of Covid-19, CL Educate has accelerated its efforts to unlock the value of its real estate assets.
The company has closed the sale of its Faridabad plot for INR 7.25 crores and its plot in Amritsar for INR 2.3 crores. Both the plots were held through its fully-owned subsidiary – Career Launcher Infrastructure.
Discussions on the selling of a few additional real estate properties are progressing with buyers, said the edtech company, which expects to close the deals in the next two quarters.
Arjun Wadhwa — Chief Financial Officer of CL Educate said: “As an organization, we are continuously working towards maximizing shareholders’ value. The recent stock split to increase market float and the impending merger of our 5 subsidiaries are also expected to bring in strategic and operational synergies.
“Sale of the unproductive real estate and the subsequent deployment of realized cash to accelerate business growth will continue to remain a key focus area for the next 2-4 quarters.”