CL Educate liquidates land parcels for Rs.100 million; proceeds to be invested back in business
New Delhi: CL Educate Ltd., (NSE, BSE: CLEDUCATE), India’s only listed EdTech and MarTech entity, and owner of Career Launcher – the popular TestPrep brand, yesterday announced the sale of 2 land parcels in Faridabad and Amritsar. The land parcel sale is part of a larger strategic decision by the company to convert its real estate bank (valued at Rs. 65-70 crore) into cash for redeployment in its core business. This stems from a broader strategic push to egress asset heavy businesses, having already exited its K-12 business.
Commenting on the land sale, Arjun Wadhwa, Chief Financial Officer, CL Educate, said, “We are accelerating and redoubling on our effort to maximize shareholder value. Sale of unproductive real estate and the subsequent deployment of realized cash to accelerate business growth was a key aspect of that push. As the real estate market was considerably lukewarm till recently, we were forced to wait for the right time. Now that there is some positive movement, we were able to sell the plot in Faridabad for Rs. 7.25 crore and another in Amritsar for Rs. 2.3 crore, the latter held through CLIP – a 100% subsidiary. Discussions for the sale of a couple of more real estate parcels are in advanced stages with buyers, which we hope to close in the next 2 quarters.”