Career Point Infosystems Ltd., an education company that tutors students aspiring for a seat in the Indian Institute of Technology, more than doubled on debut making it the nation’s best performing IPO in 18 months.
The shares surged to 628.15 rupees in Mumbai, that’s the most since March 2, 2009, when Edserv Softsystems Ltd., an Indian company that provides online training to job seekers, advanced 129 percent on debut. Career Point raised 1.15 billion rupees ($26 million) selling shares at 310 rupees apiece.
Career Point, based in the western Indian city of Kota, will use the proceeds to build a new campus as faster economic growth boosts demand for professional education courses. The country, the world’s second-most populated, will add 136 million workers, more than the population of Japan, by 2020, according to Morgan Stanley.
“There’s a huge potential available in India,” Chairman and Managing Director Pramod Maheshwari said in a phone interview today. “Coaching business will continue to grow.”
The company also provides training for students attempting to take exams to qualify for a seat in India’s medical colleges, according to its website.
Created after India achieved independence from the U.K. in 1947, IITs were designed to train leaders for India’s post-war industrial development.
Graduates from the IITs include Ajit Jain, who runs one of Berkshire Hathaway Inc.’s insurance units, Nitin Nohria, dean of Harvard University’s business school and Arun Sarin, former chief executive officer of Vodafone Group Plc.
Career Point reported a profit of 178 million rupees on revenue of 658 million rupees in the year ended March 31, according to its sale document. Investors demanded 45 times the shares on offer at the IPO.
Indian companies raised about 102 billion rupees from 30 initial public offers this year. Three companies may raise about 13.9 billion rupees this week as the benchmark Sensitive Index approaches a record high. The Sensex gained 0.7 percent, to 20,543.08 today.
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