Edserv Softsystems Ltd, an education support services company, will raise up to $35 million through Global Depositary Receipts (GDRs) to finance its expansion plans.
The board of directors of Edserv approved the GDR issue at its meeting today, the company informed the BSE in a stock exchange filing.
The company's share price rose more than 3 per cent on the news.
Chennai-based Edserve intends to price the GDRs "soon" as per regulatory norms. The entire fund-raising process is expected to be completed within the next fortnight, it added.
"The current expansion entails investment in pan-India growth to promote our flagship product www.lampsglow.com as well as recently launched mobile learning services. The funds would be utilised for infrastructure expansion, investment into additional 160 schools, increasing access to mobile and TV offerings, enhancement of IT systems and brand promotion and development," Edserv chairman and CEO S Giridharan said.
Edserv also revised its revenue guidance upwards to achieve a 60 per cent growth this financial year from Rs122 crore a year ago. The company expects to maintain profitability of 30 per cent.
The full impact of this round of fund raising on the top line will be seen next year when the company posts an even higher growth, the statement said.
At 12.59, the firm's shares were trading up by 1.24 per cent at Rs138.60 a share in a choppy Mumbai market.