Edserv Softsystems raises Rs 61 Crore throush QIP issue

Chennai based Education and Placement Company EdServ has announced the completion of fund raising including the closure of the QIP issue. The Company's QIP committee which met today announced the QIP closure.

As part of the Rs. 130 Cr expansion project, the Company has raised Rs. 108 Cr that includes Rs. 61 Cr by QIP apart from Rs. 47 Cr through the issue of equity warrants and preferential equity. The balance of the project cost shall be funded through internal accruals.

The QIP investors include a mix of Domestic and Foreign Institutional Investors (FII). The allotment of about 30 lakh shares relating to the QIP issue is expected to be completed within the next 30 days.

S. Giridharan, Chairman & CEO of EdServ said, "With the successful completion of QIP and the overall fund raising of Rs. 108 Cr, we are on track on our target for the year FY 10-11. The find raised shall be utilized as planned for our Vidhyadhana school business and also for our LAMPSGLOW.com next generation web super store for Cradle to Career solutions apart from the aggressive campaign to reach and spread Pan India."

EdServ has ended FY 09-10 with revenues of Rs. 52 Cr with the PAT of Rs. 18 Cr.

The stock was trading at Rs.202.85, down by Rs.4.15 or 2%. The stock hit an intraday high of Rs.212 and low of Rs.201.25.

The total traded quantity was 67826 compared to 2 week average of 49843.

Source : Equity Bulls

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