EDSERV SOFT - Board approves Rs. 130 crore Fund raising Plans through QIP
The Board of EdServ at its meeting held today in Chennai approved the proposal to raise up to Rs.130 crores by way of issue of Equity Shares through the QIP (Qualified Institutional Placement) route, at a price (including the premium) to be fixed by the Board of Directors on the relevant date in consultation with the Lead Managers, to fund its expansion plans that include content development & acquisition, expanding the infrastructure in Schools, upgrading its Learning Management System to include Institutions Management Systems, Infrastructure for Higher Education, Career Placement segments and brand building. As part of this, the Company will be expanding its presence Pan India.
- There will be proportionate allotment to QIBs (Qualified Institutional Buyers) in case of oversubscription.
- The Board has approved the appointment of M/s. HDFC Bank as the Merchant Banker for the proposed QIP issue.
- The Board also approved the raising the authorized capital of the company from Rs.14crores to Rs.25crores.
- The above proposals shall be subject to shareholder approval at the EGM to be held on 25th March 2010.