Tree House Education gets Rs 17 cr from anchor investors

Educational services provider Tree House Education and Accessories has received commitment of more than Rs 17 crore from anchor investors yesterday.

Company in consultation with book running leading managers has finalised allocation of 12,64,828 equity shares to three anchor investors, which are Rising India Focus Fund (50% portion), Axis Mutual Fund (Axis Equity Fund) and Axis MF (Midcap Fund).

They have subscribed for anchor book of the IPO at lower end of price band of Rs 135-153 per equity share. Now it seemed that other investors like qualified institutional buyers, non-institutional and retail investors may put in bids at Rs 135 a share.

Initial public offering of 84,32,189 equity shares has opened for subscription from today and it will close on August 12, 2011.

Tree House is going to offer discount of Rs 6 per equity share on the final issue price to retail investors. Bids can be made for minimum of 40 equity shares and in multiples of 40 shares thereafter.

Company plans to raise around Rs 114-129 crore through the issue. It intends to utilise that proceeds for expansion of pre-school business; acquisition of office space; procurement of exclusivity rights to provide educational services; construction of infrastructure for educational complexes in Rajasthan and Gujarat; and repayment of loan.