EdServe QIP issue opens today

The Committee of Directors of EdServ Softsystems Ltd (EdServ) has decided to open the Qualified Institutional Placement (QIP) Issue on July 9. The company has fixed minimum floor price for the QIP Issue 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. The company is planning to raise around Rs 80-100 crore through the QIP issue.

Commenting on the utilisation of funds, S Giridharan, chairman and CEO, EdServ said that it 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 higher education and career placement segments.

He added, 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 infrastructure 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.

The company is also aggressively tapping the online Tuition and Test Preparation space through its portal Lampsglow.com. EdServ’s online offering includes Engineering semester exam support for Civil, Mechanical, Circuit branches, IT ô CSE, Tamil Nadu Anna University syllabus fully covered, IIT JEE with sure-shot papers and with over 2,500 videos of lectures / solutions, AIEEE 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, he added.

EdServ closed the year March 31, 2010 with a revenue of Rs 52.12 crore and net profit of Rs 18.02 crore.