Tree House Education And Accessories Limited has informed the share market(BSE/NSE) that they have planning to enter capital markets with its maiden public issue of 9,6950,000 equity shares of Rs 10 each constituting 28.76% of post-paid up capital of the company. The company has filed a Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) for the same. The premium to be decided via 100% book building process. The IPO price band has not been decided yet. Tree House Education And Accessories Limited is a Matrix Partners-backed company incorporated by Rajesh Bhatia and Geeta Bhatia in the year 2006. Tree House provides educational services through play group and nursery for kids.
The proceeds of the IPO amount would be used by the company for expansion of its pre-school business (Rs.41.3 Cr), acquisition of office space (Rs.11 Cr), procurement of exclusivity rights to provide educational services (Rs.15.6 Cr), construction of infrastructure for educational complexes in Rajasthan and Gujarat (Rs.40 Cr), repayment of loan (Rs.28.58 Cr) and for other corporate purposes.
The company plans to raise Rs.14 Cr in a pre-ipo placement of 1.26 Mn shares at Rs.110.53 per share. Tree House reported a total income of Rs.21.87 Cr in FY2010 as compared to Rs.10.64 Cr in FY2009. Its net profit in FY2010 was Rs.2.59 Cr as compared to Rs.50 Lakhs in FY2009. For nine months period ending December 2010 total income was Rs.30.57 Cr with net profit of Rs.7.07 C
The Equity Shares are proposed to be listed on the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE).
The Book running lead managers to the issue are JM Financial Consultants and Motilal Oswal Investment Advisors .
Registrar of the Issue : Karvy Conputershare Private Limited, Hyderabad.
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