Aug 30, 2010 EdServ Board approves Issue of Equity Warrants to Promoter for Rs. 12 Crores

  • Constitutes a Committee for ESOP

The Board of EdServ in its meeting held today in Chennai approved the raising of Rs.12crores through the issue of 5,60,748 Equity Warrants to Mr. S. Giridharan, a Promoter of the company at Rs. 214/- per warrant. This is part of the Rs.130crore funding exercise for their expansion plan that includes raising funds through a QIP issue.

The company will utilize the funds to expand and upgrade the infrastructure and Learning Management System in Schools, aggressively target the Career Placement segments, to invest in contents for online web super store education business model, increase its presence Pan India and towards the brand building exercise.

A Committee for ESOP is also constituted by Board to recommend a suitable Employee Stock Scheme / Plan for the company.

Last week, EdServ struck an Online Training partnership with Corel Corporation of Canada where by the company will train students on Corel technology.

EdServ ended Q1FY11 with revenues of Rs.21.48crore and Net Profit of Rs.6.89cr. EdServ provides education support to schools, online tutoring through direct Tutor-Student interactions for better understanding of the subjects, learning and assessments support to K-12 students, Employable Skills Training for downtrodden, and skill matched direct job fitments using online jobs engine.

EdServ offers these in an integrated online learning and placement service anywhere, anytime through its, the first-of-its-kind web super-store for Rs.199/-.

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