The IPO of Tree House Education Limited has subscribe fully with the final over-subscription figure reached to 1.85 times on an overall basis. Tree House Education IPO was open on 10th Aug 2011 and get closed on 12th Aug 2011 for subscription. The IPO has managed to get some what better response from Retail Individual Investors Category where it overbid by 2.76 times on the final day of subscription. The price band for the issue was Rs 135 at lower level and Rs 153 at upper level. Tree House Education supplies different types of duplex board cartons to over 100 clients in various sectors like FMCG, pharma, electricals, auto ancillary and food.
The category-wise subscription status of IPO on closing day is given below:-
Qualified Institutional Buyers (QIBs) : 1.02 times
Non Institutional Investors : 1.68 times
Retail Individual Investors : 2.76 times
Overall : 1.85 times
The proceeds of the public issue are proposed to be utilized 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 equity shares offered through the IPO are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (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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