EdServ QIP Issue to open on Friday, Minimum Floor Price fixed at Rs.205 per share

The Committee of Directors in its meeting held in Chennai today has decided to open the QIP (Qualified Institutional Placement) Issue of Chennai based Education Services Company, EdServ Softsystems Ltd., (EdServ) this Friday (July 09, 2010). The minimum floor price for the QIP Issue has been fixed at Rs.205 per share, higher than the price calculated as per SEBI (ICDR) Regulation 2009. The committee shall decide on the closing date in consultation with the Lead Managers in due course.

Commenting on the utilisation of funds, S. Giridharan, Chairman and CEO, EdServ said, "The proceeds of the QIP issue will be utilised to fund the company's plans in the Schools segment where it is investing in several schools this year, its new LAMPSGLOW online web super store education business model, its Infrastructure expansion and towards expanding its presence Pan India in the lighter Education and Career Placement segments."

School Expansion: Through its Vidhyadhana Academy, EdServ will implement Learning Management Systems, School & Student Management Systems and Fun filled learning Systems with Gaming Solutions to achieve higher standards of student learning and performance. Vidhyadhana Academy will invest in technology providing well equipped Labs, LCD TVs in each class-room, administrative and student management software making these schools hi-tech. In addition, EdServ would also invest in infrastructural improvement of schools by building additional classrooms in order to accommodate the expandable capacity year on year. Vidhyadhana Academy will also introduce Automated Learning and Assessment method that will ensure that the student's learning curve is tracked and analysed for improved learning and performance as they move into higher classes.

LAMPSGLOW.com: The company is also aggressively tapping the online tuition and Test Preparation space through its portal www.lampsglow.com where the students can access all the required educational support starting at just Rs.199. EdServ's online offering includes Engineering semester exam support for Civil, Mechanical, Circuit branches, IT / CSE, Tamil Nadu Anna University syllabus fully covered, IIT JEE with sure-shot papers and with over 2,500 videos of lectures / solutions, AJEEE with sure-shot papers with videos and Job oriented / IT skill courses like C/C++, Java, Softskills and Numerical ability, apart from Live tuition online.

The stock was trading at Rs.212.65, down by Rs.5.30 or 2.43%. The stock hit an intraday high of Rs.224.45 and low of Rs.210.10.

The total traded quantity was 318005 compared to 2 week average of 227800.

Source : Equity Bulls

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