Close Window  

05 Feb 2009 EdServ Softsystems opens for subscription

EdServ Softsystems, an e-learning company, will open for subscription today with an initial public offering of 39.7 lakh equity shares of Rs 10 each. The shares are proposed to be listed on the BSE and NSE. The price will be decided through 100 per cent book-building process.

The price band for the issue is fixed between Rs 55 and Rs 60. Issue will close on February 9. The company plans to raise between Rs 23.8 crore and Rs 21 crore.

CARE has assigned IPO grade 1 to this issue, indicating poor fundamentals. Post issue, the promoters' holding will come down to 61% from 91.2%.

Qualified institutional buyers will be allotted 50 per cent of the issue, 15 per cent to non-institutional investors and the remaining 35 per cent will be allocated to retail investors. The company has reserved 2 lakh shares for employees.

The book running lead managers for the issue are Keynote Corporate Services and Ashika Capital.

Kalpathi Investments, a private NBFC, owns 46.46%. Kalpathi Investments is the largest shareholder of the company.

(C) 2009 EdServ Softsystems Limited, Chennai, India.