EdServ raises Rs 108 crore to fund expansion

To fund its Rs 130-crore expansion plans, Chennai-based education and placement company EdServ has completed its fund raising programme raising Rs 108 crore including Rs 61 crore from the qualified institutional placement (QIP) issue.

According to a company statement, it has raised Rs 47 crore, in addition to the above-mentioned Rs 108 crore, through the issue of equity warrants and preferential equity. The balance of the project cost would be funded through internal accruals.

The QIP investors include a mix of domestic and foreign institutional investors (FIIs). The allotment of about 30 lakh shares relating to the QIP issue is expected to be completed within the 30 days.

S Giridharan, chairman and chief executive officer, EdServ, said, “With the completion of QIP and the overall fund-raising of Rs 108 crore, the company is on track with its 2010-11 target. The funds raised will be utilised as planned for our Vidhyadhana school business and Lampsglow.com, a cradle-to -career web superstore, apart from the aggressive campaign to reach and spread across India.”