Educomp Solutions spurts after subsidiary sells stake in Wiz Learn Tech

Educomp Solutions rose 13.26% to Rs 12.90 at 13:35 IST on BSE after the company said its subsidiary sold entire stake in Singapore-based company.

The announcement was made during trading hours today, 5 October 2015.

Meanwhile, the BSE Sensex was up 455.46 points, or 1.74%, to 26,676.41.

On BSE, so far 20.59 lakh shares were traded in the counter, compared with an average volume of 4.54 lakh shares in the past one quarter.

The stock hit a high of Rs 13.66 and a low of Rs 11.53 so far during the day. The stock hit a 52-week high of Rs 34.35 on 5 November 2014. The stock hit a record low of Rs 9.50 on 6 July 2015.

The stock had outperformed the market over thea past one month till 1 October 2015, rising 6.45% compared with 2.04% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 12.66% as against Sensex's 6.42% decline.

The small-cap company has an equity capital of Rs 24.49 crore. Face value per share is Rs 2.

Educomp Solutions said that its subsidiary, Educomp Intelliprop Ventures, sold its entire stake in Wiz Learn Technology, Singapore to V-cube Global Services.

V-cube Global Services is a subsidiary of V-cube Japan Group and holding company of APAC region. Educomp Solutions (through its subsidiary Educomp Asia Pacific) made investment of $9 million in Wiz Learn Technology in 2007 and later on it transferred to Educomp Intelliprop Ventures.

According to Educomp Solutions, this sale will yield a return of 57% on original investment.

The company said proceeds from the transaction will be used in repaying existing debt to Axis Bank.

Wiz Learn Technology has a 50% market share among public schools in Singapore.

Educomp Solutions reported net loss of Rs 85.26 crore in Q1 June 2015 as against net loss of Rs 343.86 crore in Q1 June 2014. Net sales declined 0.29% to Rs 143.23 crore in Q1 June 2015 over Q1 June 2014.

Educomp is the largest education company in India, empowering over 30 million learners and educators across over 65,000 schools.

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