Tree House Education soars on preferential allotment to PE fund

The company will allot 1.40 million shares to Aditya Birla Private Equity at price of Rs 222.60 per share

Tree House Education and Accessories has soared 10% to Rs 259 after the board of educational services providers approved the allotment of equity shares to Aditya Birla Private Equity (PE) and ON Mauritius on preferential basis.

“The board of directors has approved the proposal to issue and allot 1.85 million equity shares at an issue price of Rs 222.60 per equity share aggregating to an issue size of Rs 41.18 crore on preferential basis,” Tree House Education said in a filing.

The company will allot 1.4 million shares to Aditya Birla Trustee Company Private Limited for and on behalf of Aditya Birla Private Equity – Sunrise Fund and 0.45 million shares to ON Mauritius, an existing shareholder of the company, it added.

The board also approved 1.8 million warrants, each convertible into one equity share, at a price of Rs 222.60 per share to its promoter Rajesh Bhatia and Geeta Bhatia.

The stock opened at Rs 240 and hit a record high of Rs 263 on the BSE. As many as a combined 351,550 shares have changed hands in morning deals against an average around 200,000 shares that were traded daily in past two weeks.