Birla Shloka Edutech FPO to hit markets on January 11, 2010

Birla Shloka Edutech Ltd. (part of the Yash Birla Group), an education Company offering IT and IT-enabled solutions has announced prize band for its -Further Public Offering (FPO) of Rs 3477.50 lakhs. The issue is being made through 100% Book building process.

The price band for the FPO is set between Rs. 45 and Rs. 50 per equity share of Rs. 10 each. The issue opens on Monday, January 11, 2010 and closes on Wednesday, January 13, 2010.

The proceeds from the FPO will be used for capital expenditure for turnkey projects executed by the Company under the BOOT model to the tune of Rs. 1500 lakhs; capital expenditure of Rs. 950 lakhs on upgradation of infrastructure and content development for XL@School; balance for funding the proposed M&A activities and meeting the working capital requirements.

Speaking on the occasion, Mr Yashovardhan Birla, Chairman, The Yash Birla Group, said, "Government thrust on education through public private partnership is commendable and we are excited to be an active participant. The proceeds of the issue will help to accelerate the growth of our company in becoming a leader in education solutions."

The equity shares of the Company are presently listed on the Bombay Stock Exchange Ltd (BSE), Calcutta Stock Exchange Limited (CSE) and Ahmedabad Stock Exchange Ltd (ASE) and the shares issued through the RHP are proposed to be listed on all of these exchanges.

Ashika Capital Ltd is die Sole Book Running Lead Manager to the issue and Bigshare Services Pvt. Ltd is the Registrar for the Issue.

The Birla Shloka Edutech stock was trading at Rs.55, down by Rs.1.85 or 3.25%. The stock hit an intraday high of Rs.56.85 and low of Rs.53.45.

The total traded quantity was 40192 compared to 2 week average of 14626.

Source : Equity Bulls

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