Subscribe to Everonn Systems IPO: Tulsian

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Investment Advisor, SP Tulsian believes that the performance of the Everonn Systems for FY07 as well as FY06 has been quite good. This is quite a good and interesting company. He advised investors to subscribe the issue.

Tulsian told CNBC-TV18, "People are inspired or quite enthused with the performance of the Educomp . In fact, this is just the model, the company Educomp is, they have signed about 550 schools in West Bengal and about 160 schools in Karnataka, the model is identical, they have already performed. You need huge working capital for creating always or providing education for the system or the support to schools for which you need about Rs 4 lakh per school."

He further added, "You get the payment in about 180 days, so you have huge book debts of the company. The fund which will get mobilized of about Rs 50 crore, and this 50 crore issue will ultimately get use for the 700 schools and I think this is a very scalable model. Market has expected that this has been giving very high P/E multiple and if you see the performance of the company for FY07 as well as FY06 that has been quite good. So I think this is quite a good and interesting company." 

"I recommend subscribe to the Everonn Systems", he said.