Apart from Dainik Jagran, HT Media and Bennett Colman & Co have also earlier picked up stake, all through equity warrants
This is part of EdServ's originally announced `.130Crore fund raising plan for nationwide expansion of business
Chennai based Education and Placement Company EdServ Softsystems (EdServ) has announced that it has today completed the `.130crore fund raising exercise for Pan India expansion. The audit committee of the company, which was constituted by the Board on 10th November 2010, met today in Chennai and approved the issue of equity warrants to the tune of `.10crore to Dainik Jagran, India's 3rd largest daily.The price of the warrant shall be fixed based on the SEBIs ICDR guidelines subject to approval by General Body through an EGM.
This is in addition to HT Media and Bennett Colman & Company Ltd., (BCCL), who had also picked up stake earlier. This entire exercise of the raising of funds involved equity dilution of around 33lakh equity shares.
Commenting on the completion of the fund raising exercise, S.Giridharan, Chairman and CEO, EdServ said, With the approval today of the issue of equity warrants to Dainik Jagran, we complete the originally announced Rs.130 fund raising plan for the business expansion. The overall equity dilution in the entire exercise is around 22% of the post-paid equity capital which stands now at `.15.5Crores. There will not be any more dilution of equity beyond what is issued now. Further, the equity warrants to be issued are likely to be converted to equity at the end of 18 months as per plan."
"We are now well funded for the Pan India Expansion where by we are confident of achieving revenues of `.150crore and net profit of over `.40crores for FY11."