CL Educate has announced the sale of two plots of land in Faridabad and Amritsar. CL Educate, as a strategic decision, has been in the process of exiting asset-heavy businesses over the last few years, including its K-12 business. As a part of this decision, the organization has been looking to convert its real estate bank (subject to necessary approvals, if required), which has a value of Rs65-70cr, into cash for redeployment in its core business.
Arjun Wadhwa, Chief Financial Officer, 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.”
The real estate market had witnessed a considerable dip over the last few years on account of COVID, but with the markets beginning to look up this year, CL Educate has accelerated its attempts to unlock the value of these assets and is pleased to share the closure of two transactions, a plot in Faridabad for Rs. 7.25 Crores and another in Amritsar for Rs. 2.3 Crores, the latter held through its 100% (Indirect) subsidiary- Career Launcher Infrastructure Private Limited.
Discussions for the sale of a couple of more real estate parcels are in advanced stages with buyers, and hopefully expect to close in the next 2 quarters.
On Sensex, CL Educate closed at a new 52-week high of Rs96.40 per piece.
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( With inputs from indiainfoline)