The Hindu : Business : Educomp to enter capital market

Online edition of India's National Newspaper
Friday, Dec 16, 2005

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Business

Educomp to enter capital market

Corporate Reporter

Proposes to invest in the U.S. subsidiary for enhancing sales

CHENNAI: Educomp Solutions, a leading provider of technology enabled education solutions and services for K12 (kindergarten to class 12) schools, is entering the capital market on December 19 with its initial public offer of 40 lakh equity shares of Rs. 10 each through the book-building process.

The issue closes on December 22. The price band has been fixed at Rs. 110-125 equity share aggregating Rs. 44 crore at the lower end and Rs. 50 crore at the higher end of the price band.

Addressing a press conference in connection with the launch of the IPO, Shantanu Prakash, CEO, said proceeds of the IPO were intended to be deployed for funding the capital expenditure required for smart-class project, education infrastructure project executed under the BOOT (build, own, operate and transfer) model, for setting up a content development facility in Bangalore, for U.S. Smart Class programme and for online tutoring project.

It also proposes to invest in the U.S. subsidiary for enhancing sales and marketing and funding the proposed M & A activities. It also plans to target the overseas education market.

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