Educomp to sell entire stake in Vidya Mandir Classes

Information Technology company Educomp Solutions on Tuesday said it will divest its entire shareholding in its subsidiary Vidya Mandir Classes Limited (VMCL) following invocation of corporate guarantee by ICICI Bank to the company.

"Pursuant to a negotiated settlement entered into with ICICI Bank, Educomp Solutions has accorded its approval to divest its entire 67 per cent shareholding in VMCL by executing the share purchase agreement dated July 25, 2016 with the buyer," Educomp said in a filing to the BSE.

"The said sale shares were exclusive security of the ICICI Bank under the facilities extended by ICICI Bank to Educomp Learning Hour Private Limited," it said.

The sale is in compliance with Educomp's approved corporate debt restructuring scheme and in accordance with the master restructuring agreement executed with the lenders and with the approval of ICICI Bank, holder of the exclusive security, it said.

Shares of Educomp closed at Rs 13.31 a unit, down by 0.08 per cent compared to its previous close, at BSE on Tuesday.