Educomp jumps after PSU bank agrees to buy out receivables

Moneycontrol Bureau

Educomp Solutions shares surged 16% on Monday after the educational IT services firm said a leading a public sector bank has sanctioned Rs 410 crore towards buyout of its receivables.

The company said it is also expecting sanctions from other banks towards the securitization programme in due course.

According to a CNBC-TV18 analysis, debtor days of the company will come down to 145-150 days from 240 days earlier, following this deal. Also, debtors pays will significantly come down to Rs 500 crore from Rs 900 crore.

Educomp shares touched an intraday high of Rs 217.90 and an intraday low of Rs 188.50. At 1:10 pm, the share was quoting at Rs 214.35, up Rs 26.95, or 14.4%.
 
It was trading with volumes of 2,510,357 shares, compared to its 5-day average of 878,203 shares, an increase of 185.9%.  In the previous trading session, the share closed down 3% or Rs 5.70 at Rs 187.40.