Tree House Education and Accessories , a educational services provider, has fixed the price band between Rs 135 and Rs 153 a share for its initial public offering of upto 84,32,189 equity shares, as per advertisement published in The Financial Express.Company will 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.
The issue, which shall constitute 25.01% of the post issue capital, will open for subscription between August 10 and August 12. 2011.
Tree House 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.
Company aims 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.
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
