Mumbai: Education services provider Edserv Softsystems Ltd said on Monday its board has approved raising upto $35 million through global depositary receipts to fund expansion, sending its shares up more than 3%.
The company, which the market values at $48.03 million, said the price of the GDR issue will be fixed soon as per regulatory norms. At 11.40 a.m., shares of the company were up 1.83 percent to 139.4 rupees in a choppy Mumbai market
“The entire fund-raising process is expected to be completed within the next fortnight,” S Giridharan, chairman and chief executive, told Reuters.
The company plans to utilise the funds to promote its products, mobile learning services, expand infrastructure, make additional investment in 160 schools and enhance its IT systems, he said.
Edserv also revised its revenue guidance for the fiscal year 2011-12 upwards with the current round of fund-raising and hopes to grow revenue 60% this fiscal year from 1.22 billion rupees a year ago.
The company expects to maintain profitability at 30%. It posted a consolidated net profit of Rs 41.21 crore in FY11.
“The full impact of this round of fund-raising on the topline will be seen next year,” Giridharan said.
The company also plans to expand its e-learning presence to overseas markets, he said.
Last week, the company entered into a partnership with CAClubIndia, which will help the education services company expand its chartered accountancy examination coaching to about 600,000 students.