The follow on public offering (FPO) of Yash Birla Group company, Birla Shloka Edutech has opened for subscription today. The company is going to raise Rs 34.77 crore via this issue.The issue comprises promoter’s contribution aggregating to Rs 5 crore and net issue to the public aggregating to Rs 29.77 crore. The company has fixed the price band at Rs 45-50, and the minimum bid lot is for 120 shares and in multiples of 120 thereafter. The issue will close for subscription on January 13, 2010.Birla Shloka Edutech is engaged in sales and services of varied products to education institutions. It is engaged in providing IT infrastructure and imparting IT and IT enabled education in schools of various boards. Currently promoters' shareholding stands at 56.67% and the rest is with the public. The issue proceeds will be used for capital expenditure for Turnkey Projects executed by the company under the BOOT model (at cost of Rs 15 crore); capital expenditure on upgradation of infrastructure and content development for XL@School (Rs 9.5 crore); funding the proposed M&A activities (Rs 4.5 crore); working capital requirements (at Rs 2.13 crore); issue expenses (at Rs 3.03 crore) and contingencies (Rs 61.25 lakh). For the year ended March 31, 2009, it reported net profit of Rs 31.45 lakh on total income of Rs 104.03 crore. For the period of six months ended on September 2009, it posted net profit of Rs 75.64 lakh on total income of Rs 64.65 crore; it has debt of Rs 8.5 crore on its books. The book running lead manager to the issue is Ashika Capital Limited and Bigshare Services Private Limited is the registrar. The share closed at Rs 54.5, down Rs 2.35, or 4.13% on Friday.
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