Log has written
THURSDAY, NOVEMBER 26, 2009

New Delhi: Educational services provider Educomp Solutions Ltd said will raise up to Rs607 crore by selling shares to institutions, sending its shares soaring more than 13%.

Educomp will issue 1.62 million equity shares at Rs3,745 per share, it said in a filing to the Bombay Stock Exchange.

On Wednesday, two sources told the agencythat the company has raised about $100 million through a share sale to institutional investors.

“The money is going to be used for our K-12 (schools) initiative, the higher education as well as the vocational front,” chief financial officer Sangeeta Gulati said over the telephone.

Gulati did not say who the investors were: “There was a long list, I think all the best.”

Educomp has said it plans to have 150 schools by 2012, spending about Rs800 crore in the venture. It has 20 schools currently and will add 23 by July 2010, according to a corporate presentation.

It recently sold a 50% stake in its vocational training unit to Pearson.

By 10:45 a.m., Educomp shares were trading over 10% up at Rs3,787, after hitting a high of Rs3,914 earlier, in Bombay Stock Exchange that was up 0.26%.

Tags - Find More Articles On:
READ MORE ARTICLES BY: