Educomp Solutions IPO
Educomp Solutions IPO — date, price band, lot size & details 2005
Educomp Solutions listed on 13 Jan 2006 at ₹155, 24% above the ₹125 issue price.
Educomp Solutions develops digital learning content and technology solutions for schools. Its profit after tax was Rs 6.33 crore in FY2005.
Stock price
Educomp Solutions is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 12 November.
- Open 19 Dec 2005
- Close 22 Dec 2005
- Allotment TBA
- Refund/credit TBA
- Listing 13 Jan 2006
Issue summary
The terms of the offer, as filed.
| IPO Dates | 19 to 22 Dec, 2005 |
|---|---|
| Price Band | ₹110 – ₹125 |
| Face Value | ₹10 |
| Lot Size | 50 Shares |
| Issue Size | ₹50 Cr |
| Sale Type | Fresh capital only |
| Listing On | BSE, NSE |
| Registrar | MUFG Intime India Private Limited |
| Min Investment | ₹ 6,250 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 50 shares at the ₹125 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 50 | ₹6,250 |
| Retail (max) | 32 | 1,600 | ₹2,00,000 |
| S-HNI (min) | 33 | 1,650 | ₹2,06,250 |
| S-HNI (max) | 160 | 8,000 | ₹10,00,000 |
| B-HNI (min) | 161 | 8,050 | ₹10,06,250 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 4
- 01Profit after tax rose from Rs 1.89 crore in FY2004 to Rs 6.33 crore in FY2005.
- 02Net worth rose from Rs 17.07 crore in FY2004 to Rs 24.20 crore in September 2005.
- 03Its promoters had over 15 years in the education industry.
- 04The whole Rs 50 crore issue was fresh money for growth.
Risks · 5
- 01Profit after tax was only Rs 0.81 crore in six months to September 2005.
- 02Part of the money was for acquisitions still under negotiation; net worth was Rs 24.20 crore.
- 03School technology sales depend on school and government budgets; reserves were Rs 19.73 crore.
- 04Its income figures could not be checked against the prospectus and are not shown; 3 periods of profit are shown.
- 05Promoter holding fell from 86.6% before the issue to 64.9% after it.
Three years of numbers
All figures in ₹ crore, as reported in the Educomp Solutions offer document.
| Metric | 30 Sep 2005 | 31 Mar 2005 | 31 Mar 2004 |
|---|---|---|---|
| Profit After Tax | 0.81 | 6.33 | 1.89 |
| NET Worth | 24.20 | 23.40 | 17.07 |
| Reserves and Surplus | 19.73 | 18.92 | 12.59 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the Educomp Solutions RHP. EPS and P/E are post-issue — the table below carries the pre-issue comparison.
Educomp Solutions IPO Valuation
How the issue prices the company before and after the fresh shares are created.
| Valuation Metric | Pre-Issue | Post-Issue |
|---|---|---|
| EPS (₹) | ₹5.29 | ₹1.01 |
| P/E Ratio (x) | 23.62 | 123.34 |
| Market Cap at Offer Price (₹ Cr) | ₹19.14 | ₹100.25 |
Pre-issue figures use the shareholding reported in the RHP; post-issue figures use the shareholding once the fresh issue has created new shares. The two differ because of that dilution and because post-issue earnings per share are often annualised, so the change can run in either direction. Market capitalisation is calculated at the ₹125 offer price. Compare the post-issue P/E against listed peers before deciding — a premium there is growth you are paying for in advance.
Where the money goes
₹77.45 Cr of the issue is earmarked to named objects.
About the company
It makes digital learning content and technology based solutions for schools and other educational institutions.
It had identified places for offshore development facilities in Bangalore, vendors for equipment and software, and potential acquisition targets.
The IPO was Rs 50 crore and was entirely a fresh issue at Rs 125, the top of the Rs 110 to Rs 125 band.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Educomp Solutions IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
SBI Capital Markets Ltd.
141 issues handledBest listing: Bajaj Housing Finance (+114.3%). Weakest: ICICI Securities (-16.3%).
Karvy Investor Services Ltd
31 issues handledBest listing: Ramkrishna Forgings (+92.3%). Weakest: Astral Poly Technik (-10.4%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of Educomp Solutions?
The current Grey Market Premium is ₹0.
What is the Educomp Solutions IPO price band?
₹110 to ₹125, on a face value of ₹10.
When is the allotment?
The basis of allotment is TBA, with listing on 13 January 2006.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — MUFG Intime India Private Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
