Edserv to raise up to USD 35ml from overseas through GDRs

IT training services provider Edserv Softsystems today said it will raise up to USD 35 million (nearly Rs 155 crore) through a Global Depositary Receipt (GDR) issue to fund expansion plans.

The board of the company has approved raising up to USD 35 million through GDRs to fund its aggressive expansion plans, Edserv Softsystems said in a filing to the Bombay Stock Exchange.

With the current round of fund-raising, the company has revised its guidance for FY'12, projecting 60% growth in revenues this year from Rs 122 crore last year, the filing added.

"The full impact of this round of fund-raising on the top-line (revenue) will be seen next year when the company expects to post an even higher growth," the company said.

Edserv Softsystems also has plans to expand its e-learning presence, including schools, CA institutes, international test preparations, IT skills and personality skill training activities, into overseas markets.

"The current expansion entails investment in pan-India growth. The fund will be utilised for infrastructure expansion, investment into an additional 160 schools, increasing access to mobile and TV offering, enhancement of IT systems and brand promotion and development," Edserv Softsystems Chairman and CEO S Giridharan said.

Shares of Edserv Softsystems were being quoted at Rs 139.50 apiece in early trade on the BSE today, up 2.05% from their previous close.