Tree House hits record high on Rs 41cr preferential issue

Tree House Education and Accessories gained more than 18 percent intraday to touch a life-time high of Rs 278.85 on Wednesday after receiving Rs 41.18 crore through preferential issue.

Yesterday the company has proposed to allot 18.5 lakh equity shares on preferential allotment basis to Aditya Birla Private Equity Sunrise Fund and ON Mauritius at Rs 222.60 per share, a discount of 5.7 percent to Tuesday's closing price.

Its existing shareholder ON Mauritius, which held 2.64 percent stake in the company as of 2012, will get 4.5 lakh shares worth Rs 10.01 crore through this issue while Aditya Birla Trustee Co Pvt. Ltd. (for and on behalf of Aditya Birla Private Equity – Sunrise Fund) will receive 12 lakh equity shares aggregating to Rs 31.16 crore.
 
The stock has been doubled from its listing price of Rs 135 on August 26, 2011.

At 11:53 hours IST, Tree House Education rose 16 percent to Rs 273.80 on the Bombay Stock Exchange.
 
Volumes also increased quite significantly to 355,542 equity shares as compared to its five day average of 25,402 shares. Market capitalisation of the company currently stands at Rs 934.08 crore.

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