Educomp Solutions receives fund infusion of $155 million

Educomp Solutions Ltd., India's largest Education Company today announced that it has received the disbursement of USD 155 million as part of the financing package that was announced on June 19, 2012.

An amount of $70 million as External Commercial Borrowing (ECB) comprising $30 million from IFC, a member of the World Bank Group and $40 million from Societe De Promotion Et De Participation Pour La Cooperation Economique (Proparco), a French development financial institution. The ECB has a term of 8.5 years with a 3 years moratorium.

The company received an amount of $10 million as Foreign Currency Convertible Bond (FCCB) from IFC, convertible into equity shares of the company at a premium of 40% to the floor price as per SEBI formula.

The company has received an amount of $50 million as equity comprising about $15 million from IFC, $5 million from Proparco and $30 million from funds managed by Mount Kellett Capital Management LP (Mount Kellett) at the price of Rs.149.16 per share (a premium of 10% to the floor price as per SEBI formula).

The promoter group has infused $25 million comprising $15 million of equity and $10 million of equity warrants at a price of Rs.193.74 per share, representing a premium of approximately 44% to the closing price of the equity shares as on June 18, 2012.

The Educomp Solutions stock was trading at Rs.154.10, down by Rs.0.25 or 0.16%. The stock hit an intraday high of Rs.161.20 and low of Rs.151.10.

The total traded quantity was 7.45 lakhs compared to 2 week average of 4.35 lakhs.

Source : Equity Bulls

Keywords