Edserv Softsystems ends with 129% premium

Edserv Softsystems settled at Rs 137.55 on BSE, a sharp premium of 129.25% to its IPO price of Rs 60.

Meanwhile, the BSE Sensex ended lower 284.53 points or 3.20% to 8607.08.

The stock debuted at Rs 55, a discount of 8.33% over the initial public offer (IPO) price. The stock hit a high of 147 and low of Rs 55 during the day.

The counter saw high volumes of 3.41 crore shares on BSE.

At current price of Rs 137.55, the stock trades at a PE multiple of 65.5, based on its year ended March 2008 EPS of Rs 2.1.

The initial public offering of Edserv Softsystem (ESL) was oversubscribed 1.30 times. The qualified institutional buyer category was subscribed 1.07 times, the non institutional investors category 3.10 times and the retail investors category 1.02 times. The issue was open between 5 February 2009 - 9 February 2009.

ESL came with an initial public offering of 39.7 lakh equity shares of Rs 10 each in the price band of Rs 55 - Rs 60. The issue price was later fixed at Rs 60.

Incorporated in 2001, Chennai-based Edserv provides integrated learning and placement solutions, customized software solutions and placement consulting to clients in the field of IT and non-IT verticals. The company has three business units, viz. ELMAQ (IT Training), Edserv (HEADS) and Lambent (Software Development).

The proceeds of the issue would be utilized mainly for establishing the HEAL Lab to develop, test, install, connect and implement the D2J (Degree to Job) content across all HEADS Offices. It will also finance the cost for establishing HEADS Offices across India.

For the year ended on March 2008, the company posted net profit of Rs 2.53 crore on net sales of Rs 3.95 core.