Edserv Softsystems opens for subscription

Mumbai: Edserv Softsystems Ltd, an e-learning company is is entering the capital market after a long respite. Recently Gemini Engi-Fab Ltd has cancelled its issue due to bleak economic outlook and directionless secondary market, whose IPO was to open on Feb 3.

Edserv's initial public offering of Rs 39.7 lakh equity shares opens on February 5. The price will be decided through 100% book-building process. The company has fixed a price band of Rs 55-60 per share of face value Rs 10 The issue closes on February 9. The company plans to rise between Rs 23.8 crore and Rs 21 crore to expand humanware education & deployment system business up to 200 centers.

The issue has received poor grading of 'grade 1' from rating agency CARE. After the issue the promoters holding will come down to 61% from 91.2%. Qualified institutional buyers will be allotted 50% of the issue, institutional investors 15% and the remaining 35% will be allotted to the retail investors. The company has reserved 2 lakh shares for the employees.
SOURCE: LIVEMINT.COM

Edserv Softsystems IPO subscribed 1.30 times

IPO of Edserv Softsystems Limited web-learning, which is an IT consulting and resource deployment company has been subscribed about 1.30 times as against 39, 73,908 shares offered. The Qualified Institutional portion was subscribed by 1.08 times while Non - Institutional investor's portion received a response of 3.10 times and the Retail portion was subscribed 1.0 times The IPO opened on February 05 and closed on February 09 was priced at a band of Rs55-60 at a face value of Rs10 per share through the book-building route.

Chennai-based company would be listed on the Stock Exchange, Mumbai (BSE) and The National Stock Exchange (NSE). It provides integrated learning and placement solutions, customized software solutions and placement consulting to clients in the field of IT and non-IT verticals.

The proceeds of the issue would be utilized mainly for establishing the HEAL Lab to develop, test, install, connect and implement the D2J (Degree to Job) content across all HEADS Offices. It will also finance the cost for establishing HEADS Offices across India. Another object of Edserv would be to finance the cost for developing and implementing the copyrighted centralized LAMPS Portal Engine. Edserv will establish 200 Partner-led EdCenters under BMC model across India and South Asia. The Issue is lead managed by Keynote Corporate Services Limited and Co-lead managed by Ashika Capital Limited. The Registrar to the issue is Karvy Computershare Private Limited. SOURCE: LIVEMINT.COM

Funds raised from public issue dropped by 95 pc

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Funds raised from public issue dropped by 95 pc during April-December :

Mumbai: The funds raised from public issues, dropped by 95 per cent in the first nine months of the current fiscal as compared to the year-ago period.

During April-December 2008, there were 20 public issues which mobilized Rs 2,058 crore as compared to Rs 38,153 crore during the same period in the previous year, SEBI said in its January bulletin. During 2007, 74 public issues were floated.

Some of the companies which floated their IPOs during 2008-09 include Austral Coke and Projects Ltd, 20 Microns and KSK energy ventures. However, no public issue was raised during the month of December.

Recently, SEBI has reduced the time period for disclosing the price band of an initial public offer (IPO) from two weeks to two days, with an objective to help companies to take into account current market conditions before the announcement of offer prices.

source: livemint.com