Dainik Jagran picks up Rs10-crore worth stake in EdServ
23 Nov 2010
Chennai-based education and placement company EdServ, yesterday said that Dainik Jagran, India's third largest daily, has picked up Rs10-crore worth stake in the company through equity warrants. The stake sale is part of EdServ's plan to raise 130-crore for its pan-India expansion.
Earlier, major media groups, HT Media and Bennett Colman & Company had picked up stake in EdServe through equity warrants.
"With the approval for issuing equity warrants to Dainik Jagran on Monday, we complete the originally announced Rs130-crore fund raising plan for the business expansion," said EdServ chairman and CEO, S Giridharan.
The fund raising exercise involved issuing around 33 lakh fresh shares and diluting the equity base by 22 per cent, the company said.
Explaining the rationale of the media houses' investment in the company, Giridharan said: "The treaties signed with these top media houses will help us with advertising and promotions, with options to market our education and placement services on press, TV and radio. BCCL has 45 radio stations across India while Dainik Jagran and HT Media will ensure that we reach West, North and East India. We already have a significant brand presence in South India."
EdServ has reported a 130 per cent growth in net profit for the fiscal second quarter ended 30 September 2010. The company reported revenues of Rs27.36 crore for Q2FY11 as against Rs11.17crore in Q2FY10, recording a revenue growth of 145 per cent.
