A-Team Edutech files IPO papers with SEBI

Tamil Nadu based A-Team Edutech has filed draft red herring prospectus with market regulator SEBI for its public issue of 81,81,818 equity shares of face value Rs 10 each. The issue will constitute 45% of the fully diluted post issue paid-up equity share capital of the company.

It is an educational infrastructure management company. It is engaged in consultancy, content development, network architecture and other business services pertaining to information technology infrastructure.

The company has a list of 200 clients, which are government accredited educational institutions/colleges. Its 90% of clients are based in the southern Indian state of Tamil Nadu. It also ventured into Kerala and some places in northern India.

A-Team intends to spend IPO money for setting up of corporate office (with an outlay of Rs 7.54 crore); content development (with cost of Rs 15.15 crore); setting up cloud computing infrastructure (with Rs 31.74 crore); setting up of A-Team learning development centres internationally (with cost of Rs 10.31 crore); ERP portal for college management (with an outlay of Rs 11.7 crore); and marketing and brand building (with Rs 10 crore).

Promoters Senthil Kumar and S Sivagami will hold 34.65% and 14.85% stake in the company post issue.

For the period of three months ended on June 30, 2011, the company reported a profit after tax of Rs 67.98 lakh on total income of Rs 8.23 crore. For the full year ended March 31, 2011, it posted a profit of Rs 6.95 crore on total income of Rs 71.39 crore.