Everonn IPO - Educational Solutions Company

Chennai-based education and learning solutions company Everonn Systems India is tapping the capital markets with a public issue of Rs 50 crore. The price band has been fixed between Rs 125 and Rs 140 per share of Rs 10 each.

With a current authorised capital of 16 million shares and paid-up capital of 10.28 million shares, the company will increase its issued shares by 35.71 lakh at the lower end of the IPO band and 40 lakh shares at the upper end. The company plans listings on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The issue will open on July 5, 2007, and close on July 11, 2007.

Everonn Systems has budgeted an outlay of Rs 30 crore for IT infrastructure services. Out of the IPO proceeds, the company will allocate Rs 17.25 crore towards capital expenditure for virtual and tech-enabled learning solutions, and Rs 8 crore has been earmarked for mergers and acquisitions during 2007-08, Rs 5 crore for working capital, while brand building and investments in the company’s proposed subsidiary will be taken up with the rest of the funds. The company also announced that it has received Gujarat Government's contract to set up IT labs worth Rs 30 crore.

Everonn is also looking at expanding its operations in the overseas market, especially in the Middle East and Far East--Singapore and Malaysia.

Kishore Padmanabhan, managing director, Everonn Systems said: "Almost 95% of the e-learning market is untapped. India alone has 10 lakh schools that can be provided such services."

Everonn Systems has seen revenue grow at a compound annual growth rate (CAGR) of 22% and profit after tax at a CAGR of 64%. For the year ended March 31, 2007, the company recorded a turnover of Rs 43 crore.