Mumbai based Siddharth Education Services Ltd to come up with IPO
Mumbai based Siddharth Education Services Ltd is entering the capital market with an IPO of 29, 52,000 equity shares of Rs 10 each. Price Band is Rs 30 to Rs 36 per equity share of Face Value Rs 10 each. The Issue opens on 29th September 2017 and closes on 5th October 2017.
The Floor Price is 3 times of the Face Value and the Cap Price is 3.60 times the Face Value. Bids can be made for a minimum of 3000 equity shares and in multiples of 3000 equity shares thereafter.
The Book Running Lead Manager of the Issue is Gretex Corporate Services Pvt Ltd and the Registrars to the issue are Karvy Computershare Pvt. Ltd. The equity shares offered through the Draft Red Herring Prospectus are proposed to be listed on SME platform of BSE Ltd.
Siddharth Education Services Ltd, which is operating in the tutorial coaching services space for professional courses, has been able to achieve a competitive position in the state of Maharashtra, with primary operations based in Mumbai. The education services company has presence in the form of 4 coaching centers in Dombivli, Thane, Vashi and Dadar. It has a team of 22 faculty members. The Promoter and Chairman, Mr. Vinay Bhagwat, has a vast experience of over 20 years in the field of teaching students of professional courses. He is also the Founder of Siddharth Academy, which was established in the year 1997.
The Company proposes to utilize the net proceeds from the issue to fund the establishing of new coaching centers. The Company has identified 10 locations. The Company also intends to utilize the fund towards such potential acquisitions of human resource training institutes and other strategic initiatives. The Company proposes to develop online learning platform and digital marketing through social media engagement. The Company also intends to deploy the balance proceeds for general corporate purposes.
For the year ended 31st March 2017, the total revenue of the education services company was Rs 496 lakhs and Profit Before Tax was Rs 147 lakh. The Net Worth of the Company was Rs 542.66 Lakh and Net Asset Value per equity share was Rs 13.90.
India holds an important position in the international education industry. Presently, the Indian education services industry is valued at US$ 100 Billion and is expected to nearly double to US$ 180 Billion by 2020. The nation has more than 1.5 million schools with over 260 million students enrolled. India also has 751 universities and 35539 colleges. India has one of the largest higher education systems in the world. India has become the 2nd largest market for e-learning after the US. The Indian education industry is currently pegged at US$ 2 Billion and is expected to reach US$ 5.7 Billion by 2020. The Indian distance education market is expected to grow at a compound annual growth rate (CAGR) of around 11% during 2016-2020.