Educational services provider Tree House Education and Accessories is eye to tap capital market with an initial public offering of upto 84,32,189 equity shares of face value of Rs 10 each on August 10, 2011, by diluting 25.01% stake.
The company may offer a discount of upto 5% of the issue price to the retail individual bidders.
It operates the largest number of self-operated pre-schools in India. (Source: CRISIL Report - December 2010). As of June 15, 2011, it has 223 pre-schools under the brand name of “Tree House” across 33 cities (as per municipal limits) in India; out of which 149 are operated by the company and the rest by franchisees.
Tree House also provides educational services to K-12 schools.
It intends to utilise the issue 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. The issue will close on August 12.
The company reported a net profit of Rs 9.2 crore in the year ended March 31, 2011 on total income of Rs 41.15 crore. In the financial year 2009-10, net profit of the company stood at Rs 2.6 crore and total income was at Rs 21.87 crore.
JM Financial Consultants Pvt Ltd and Motilal Oswal Investment Advisors Pvt Ltd are the book running lead managers to the issue. Link Intime India Pvt Ltd is the registrar
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