Edserv to raise upto Rs 130 cr thru QIP

CHENNAI: The Board of EdServ on Wednesday approved the proposal to raise up to Rs.130 crore by way of issue of equity shares through the QIP (qualified institutional placement) route, at a price (including the premium) to be fixed in consultation with the lead managers.

It is to fund its expansion plans that include content development & acquisition, expanding the infrastructure in schools, upgrading its learning management system, career placement segments and brand building. As part of this, it will be expanding its presence pan India, Edserv said in a release.

There will be proportionate allotment to QIBs (qualified institutional buyers) in case of oversubscription. HDFC Bank has been appointed as merchant banker for the proposed QIP issue.

The Board also approved raising the authorized capital from Rs.14 crore to Rs.25 crore. An EGM is convened on March 25 to get the approval of shareholders.