The Hindu Business Line : Everonn Systems plans raising Rs 50 cr thru IPO

IN THE MARKET: Mr P. Kishore, Managing Director, Everonn Systems India, and Ms Susha John, Director, at a press conference in Chennai on Saturday. — Bijoy Ghosh

Chennai June 23 Everonn Systems India, which provides education and learning solutions, proposes to raise Rs 50 crore through an IPO to fund its Rs 65-crore expansion programme. The issue opens on July 5; the price band for Rs 10 share is Rs 125 to Rs 140.

About 50 per cent of the public issue will be allocated for qualified institutional buyers and at least 35 per cent to retail investors on a proportionate basis.

At a press conference today, company officials did not disclose the number of equity shares that would be freshly issued during the IPO but said post-IPO, the public holding in the company would be around 25 per cent. Currently, 42 per cent of the company is held by promoters and the promoter group, 30 per cent by foreign investors and 29 per cent by Indian corporates.

As part of its expansion plans, Everonn Systems would require a capex of Rs 30 crore for its institutional education and information technology infrastructure services and Rs 17.25 crore for its virtual technology enabled learning solutions.

Additionally, the company has earmarked Rs 8 crore to acquire content development companies (working in areas such as multimedia, animation and graphics design) to ramp up its domestic and overseas presence. The company also has plans to set up offices in Singapore and Dubai.

Last year Indian China Pre IPO Equity (Mauritius) Ltd, a company managed by Singapore-based Temasek Holdings Pvt Ltd, invested Rs 14.06 crore in Everonn. "This amount and internal accruals should be sufficient to fund our expansion," said Mr P. Kishore, Managing Director, Everonn.

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Everonn Systems plans raising Rs 50 cr thru IPO