EdServ Softsystems plans IPO

Mumbai: EdServ Softsystems, an e-learning company, would be tapping the capital market with an initial public offering of 39.7 lakh equity shares of Rs 10 each. The shares are proposed to be listed on the BSE and NSE. The price will be decided through 100 per cent book-building process.

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The price band for the issue is fixed between Rs 55 and Rs 60. Issue will open on February 5 and will close on February 9. The company plans to raise between Rs 23.8 crore and Rs 21.8 crore.

Post issue, the founder stake would come down to 29.5 per cent from 44.06 per cent, while Kalpathi Investments Pvt Ltd’s stake would be reduced to 31.08 per cent stake (446.46 per cent).

The earnings from the issue will be used for developing the copyrighted D2j content by HEADS Learning (HEAL) architecture, financing the cost for establishing the HEAL Lab to develop, test install, connect and implement D2J across all its HEAD offices and also to expand their HEADS offices across the country.

It will use the proceeds to fund its other expansion plans as well.

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Qualified institutional buyers will be allotted 60 per cent of the issue, 10 per cent to non-institutional investors and the remaining 30 per cent will be allocated to retail investors. The company has reserved 2 lakh shares for employees.

The book running lead managers for the issue are Keynote Corporate Services and Ashika Capital.