Indian IPO

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Thursday, July 12, 2007

Everonn IPO oversubscribed 132 times

Everonn Systems, a fully integrated education and learning Solutions Company, has received an overwhelming response for their initial public offering and the issue has been oversubscribed 131.47 times at the upper end of the price band of Rs 140. Non institutional and retail investors have given strong support to the issue followed by qualified institutional investors.

A 40 lakh public issue received bids for 52.58 crore shares, which includes bids for 16.69 crore shares at cut off price.

Huge response has seen from non-institutional investors (HNIs). The reserved portion of 6 lakh shares received bids for 16.66 crore shares, that is 227.81 times. Retail and qualified institutional investors also on the same line, their portion subscribed 124 times and 93 times, respectively.

The company had entered capital market for subscription with a public issue of equity shares of face value of Rs 10 each, for cash at a premium aggregating to Rs 50 crore at the price band of Rs 125-140, per equity share. The issue was being made through a 100% book building process.

Everonn Systems, a fully integrated Knowledge Management, Education and Training Company offers a range of services which includes creating educational and training content, designing and executing learning initiatives and setting up the required infrastructure for learning and training.

The equity shares of the company are proposed to be listed on Bombay Stock Exchange and the National Stock Exchange. The book running lead manager to the issue is Centrum Capital and registrar to the issue is Cameo Corporate Services Limited.

Everonn Systems has embarked on expansion project to be funded by IPO proceeds and internal accruals. Everonn Systems has budgeted an outlay of Rs 3000 lakh for IT Infrastructure Services. The company plans to expand their operations close to 1000 schools every year. The company will allocate Rs 1725 lakh from their IPO proceeds towards capital expenditure for Virtual and Tech Enabled Learning Solutions. Company would also utilize the funds raised from the IPO towards brand building; funding for proposed mergers & acquisitions and to invest in the proposed subsidiary.


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