CL Educate - which owns the brand Career Launcher - launched its IPO issue on March 20, and is available for subscription until tomorrow. The company aims to raise Rs 239 crore from the issue, which is priced at a band of Rs 500-502. Analysts however, are not bullish about this issue.

ICICI Securities for example, has issued an AVOID rating, and noted that the company's Career Launcher test preparation business accounts for over 45% of the company's revenues. Colleges and institute authorities have been trying to clamp down on the test prep business to discourage over-preparation and the large spends students and parents invest in entrance exam classes and training. Any changes in education policy, consequently, would impact the Career Launcher business and open it to new competition. 

In addition, the IPO may be too pricey for its segment. CL Educate's IPO price offer discounts the company’s TTM earnings by 25 times, more expensive than MT Educare which trades at about 17 times its TTM earnings.