EdServ to buy Prosel biz

T.E. Raja Simhan Chennai | Updated on March 12, 2018

EdServ Softsystems Ltd, the Chennai-based provider of technology-driven learning, will acquire the business and content for professional certification courses of Prosel Ventures Pvt Ltd for Rs 35 crore. The sellers will be paid in EdServ shares.

Edserv will issue 25 lakh equity shares of Rs 10 each at a price of Rs 140 a share, which is higher than the pre-determined price of Rs 130 a share (as prescribed by SEBI).

The city-based Prosel provides content (course material) for courses such as Chartered Accountants, Company Secretaries and Cost and Works Accountants. It has developed nearly 600 animated video lectures, assessment systems, supporting materials such as workbooks and revision materials for all three stages (foundation, intermediate and final examinations). It also does research in the education sector.

According to EdServ's annual report for 2010-11, Prosel's content can also be adapted to serve as supplementary learning and tutoring material for higher secondary students in Indian schools.

DB Corp to invest in EdServ

Meanwhile, EdServ will raise Rs 15 crore by issuing 700,935 fully convertible equity warrants of Rs 10 each at Rs 214 to the Gujarat-based Dainik Bhaskar Corp, which will have 2.70 per cent stake in EdServ post the issue. This was approved by EdServ's shareholders at its tenth annual general meeting today.

Last November, EdServ had issued equity warrants to three other media houses — Dainik Jagran, HT Media and Bennett Colman & Co.

Nokia deal

Mr S. Giridharan, Chairman and CEO, EdServ, at the AGM said the company has become an application developer for Nokia. “This will be the biggest campaign we can enjoy,” he said. Mobile space is one sector that will ensure sustained profitability and growth for the company, he said.

On the BSE, EdServ's share price dropped by Rs 0.80 to close at Rs 96.85.

Published on September 29, 2011

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