IPO proceeds to pay off debt: Tree House Education

In an interview with ET Now, Rajesh Bhatia, MD, Tree House Education & Accessories Ltd, talks about company's IPO.

ET Now: What is your current branch count and what kind of branch addition plans would you have for FY12 or say over the next 12 months to come?

Rajesh Bhatia: We have 223 pre-schools, 149 of which are self run. We have been growing this company consistently over the last few years at a good pace. We expect to continue maintaining the same momentum of growth that we have seen in the past.

ET Now: Can you tell us who are the current PE investors in the company and at what last price the placement was done?

Rajesh Bhatia: We have the following private equity investors, we have Matrix Capital Partners, we have Foundation Capital. And as the two private equity investors who invested in our company in 2008 and then again in 2008, we had Matrix Capital Partners. In 2010, we had Foundation Capital and Matrix Partners both invested in our company. We have recently done a pre-IPO round where Omidyar Network, Matrix Capital Partners as well as Foundation Capital has participated but this was done at a price of Rs 150 per share.

ET Now: What is the current debt on your books and how much would you be retiring via the raised funds through the IPO?

Rajesh Bhatia: Raised around 28.5 crores of debt to finance some of the on-goings of the company, which I have mentioned in the IPO objects and we will basically use the IPO proceeds to pay off this debt.