MT Educare, an education support and coaching services provider, settled at Rs 90.35, a 12.93% premium over initial public offer price of Rs 80 per share. The equilibrium price of MT Educare during the one-hour auction in pre-open session was set at Rs 86.05, higher by 7.56% over the initial public offer (IPO) price of Rs 80.

In light of high volatility and price movement observed on first day of trading, market regulator Securities & Exchange Board of India (Sebi) had vide its circular dated 20 January 2012 put in place a framework of trade controls for IPO and re-listed scrips. Price bands for issue size up to Rs 250 crore for the first day in the normal trading session will be 5% of the equilibrium price. Additionally, the trading shall take place in trade to trade segment for first 10 days from commencement of trading. For issue size greater than Rs 250 crore, the applicable price bands for the first day are fixed at 20% of the equilibrium price.

Shares of MT Educare hit a high of Rs 90.35 and low of Rs 86.05 during the day. The counter clocked volume of 16 lakh shares on BSE.

MT Educare's initial public offer (IPO) was subscribed 4.8 times and got bids for 5.27 crore shares. The company had priced the IPO at the top end of the Rs 74-80 a share price band. The issue had closed on 29 March 2012.

The qualified institutional buyers (QIBs) portion was subscribed 6.01 times. Foreign institutional investors (FIIs) put in bids for 1.22 crore shares, compared with 46.26 lakh shares reserved for the QIB category as a whole. The non-institutional investors category was subscribed 8 times and retail individual investors (RIIs) category was subscribed 2.17 times.

MT Educare's IPO comprised of fresh issue of Rs 35 crore and an offer for sale of up to 80 lakh equity shares by Helix Investments Company -- a private equity (PE) fund. Helix had pumped in Rs 32.80 crore in MT Educare in 2007.

MT Educare had on 26 March 2012, allotted 17.37 lakh shares to two anchor investors -- Nomura Trust and Birla Sun Life Mutual Fund at Rs 74 a share, at the bottom end of the Rs 74-80 per share IPO price band.

MT Educare, promoted by Mahesh R. Shetty, is one of the leading coaching services providers in Maharashtra, with primary operations in Mumbai. The company 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.

Out of the total proceeds of the fresh share issue amounting to Rs 35 crore, Rs 20 crore is required for part financing the cost of construction of a pre-university college (PUC) campus at Mangalore. The company will spend Rs 5 crore for establishing new coaching centres at 20 locations. The remaining funds are required for general corporate purpose.