Educomp defers $250 million share sale

Education service provider Educomp Solutions has deferred a proposal for raising $250 million through a share sale in view of poor market conditions.

In May, the company had announced plans for a share sale without giving a timeframe.
The Indian stock market, which has been volatile so far this year, has seen its benchmark index decline over 18 per cent. The dismal performance has placed it among the worst performing major markets in the world.

Stocks have also been hurt by local concerns, including rising interest rates that have hit corporate profits and slowed economic expansion.

Educomp, valued at Rs1,950 crore, has lost about 62 per cent this year. The shares, in morning trade, today were trading down 3 per cent at Rs198.

The shares have taken a hammering from a weak outlook for the current fiscal and a search by the income-tax department at Educomp's office last month.

In June, the education service provider had received shareholder approval for restructuring the $78.50 million outstanding foreign convertible bonds it held, and to raise its authorised share capital.