Monday, February 9, 2009

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.

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