Issue Opens On : July 05, 2007
Issue Closes On : July 11, 2007
Issue Size : Rs. 5000 lacs
Face Value : Rs.10/-
Price Range : Rs. 125 to Rs. 140/-
Issue Type : Book Building
Tick Size : Re.1/-
Market Lot : 50
Minimum Order Qty : 50
Listing Stock Exchange : NSE, BSE
Objects Of the Issue :
To meet Capital expenditure for Institutional Education and IT infrastructure Services.
To meet Capital expenditure for Virtual and Tech Enabled learning solutions.
For Brand Building exercise for the Company
To Fund the proposed Mergers & Acquisitions activity
To invest in the proposed Subsidiary to Retail Educational aids, tools and other products.
To meet the expenses of the Issue..
Basis for Issue Price :
Face Value : Rs.10/-
Issue Price : 12.5 Times(Lower Price Band) of the Face Value.
Issue Price : 14 Times(Higher Price Band) of the Face Value.
Issue Price : Rs. 125 to Rs. 140
EPS for the last financial year 2006-07 : Rs 5.63
EPS for the last year 2005-2006 : Rs 6.60
EPS for the financial year 2004-05 : Rs. 2.03
Weighted Average EPS for the years April 2004- March 2007 : Rs 5.35
Industry PE ratio:
Highest : 74.40
Lowest : 12.80
Industry Composite : 55.10
PE ratio of Everonn on the higher side of price band comes out to 26.17 times and on the lower side of the price band comes out to 23.36 times on the basis of weighted average EPS for the last three years.
PE ratio of the Peer Group
Educomp Solutions : 74.40
NIIT : 145.30
Industry Overview :
India is currently one of the largest markets for School Education in the World. India currently has over 1 million schools providing education from K-12 (kindergarten – Class 12) to over 200 million students. There are over 5 million teachers across India who needs support in training in IT and delivery of Education.
In keeping with its billion-plus population and high proportion of the young, India has a large formal Education System. Its target group (children and young persons in the 6-24 years age group) numbered around 411 million in 2003, or about 40% of the country’s population.
The Government of India has spent over Rs. 10,000 crores on Elementary Education in the country during 2005-06 through its various schemes. Besides this the Government has an outlay of Rs 2563 crores on Higher/Secondary Education during 2005-06. Education in the country is funded through a 2% Education Cess and other Budgetary Allocations.
Business Overview :
The company is a fully integrated Knowledge Management, Education and Training Company offering a range of services that include Creating Educational and Training Content that is globally relevant, Designing and executing large learning initiatives, Setting up the needed infrastructure for learning and training.
The company leads in computer education in schools and colleges and it has partnered with various State Governments to impart computer education in schools and colleges whereby the Computer Lab infrastructure is set by the Company inside the School and College and IT Education is imparted through well trained faculty of the company.
History :
Everonn Systems India Limited was incorporated on 19th April 2000 as a Public Limited Company under the Companies Act, 1956. The Registered Office of the Company, was shifted from Ooty, Tamilnadu to Chennai, Tamilnadu on December 30, 2005, and is situated at 82, IV Avenue, Ashok Nagar, Chennai – 600 083.
Financial Information :
Total income of the Company for the year ended 31st March, 2007 : Rs. 4304.46 lacs
Total income of the Company for the year ended 31st March, 2006 : Rs. 3093.03 lacs
Total income of the Company for the year ended 31st March, 2005 : Rs. 1942.95 lacs
Net profit (after tax) for the year ended 31st March, 2007 : Rs.485.64 lacs
Net profit (after Tax) for the year ended 31st March, 2006 : Rs.490.93 lacs
Net profit (after Tax) for the year ended 31st March, 2005 : Rs.151.13 lacs
Comments :
Another good issue. The shares are being offered in the multiple of 23 to 26 times of the last three years weighted average EPS which is much lower than its peers and industry average. There are not many players in this sector and not much competition is there. The company has collaborated with state Goverenments for imparting computer education in Government Schools and Colleges and therefore it will have a steady growth over a period of time. The past performance of the company is also very consistent. We have recently seen the phenomenol run of Educomp after its listing which is in the same sector. Its a must apply issue for listing gains, short term, medium term and long term.
Issue Closes On : July 11, 2007
Issue Size : Rs. 5000 lacs
Face Value : Rs.10/-
Price Range : Rs. 125 to Rs. 140/-
Issue Type : Book Building
Tick Size : Re.1/-
Market Lot : 50
Minimum Order Qty : 50
Listing Stock Exchange : NSE, BSE
Objects Of the Issue :
To meet Capital expenditure for Institutional Education and IT infrastructure Services.
To meet Capital expenditure for Virtual and Tech Enabled learning solutions.
For Brand Building exercise for the Company
To Fund the proposed Mergers & Acquisitions activity
To invest in the proposed Subsidiary to Retail Educational aids, tools and other products.
To meet the expenses of the Issue..
Basis for Issue Price :
Face Value : Rs.10/-
Issue Price : 12.5 Times(Lower Price Band) of the Face Value.
Issue Price : 14 Times(Higher Price Band) of the Face Value.
Issue Price : Rs. 125 to Rs. 140
EPS for the last financial year 2006-07 : Rs 5.63
EPS for the last year 2005-2006 : Rs 6.60
EPS for the financial year 2004-05 : Rs. 2.03
Weighted Average EPS for the years April 2004- March 2007 : Rs 5.35
Industry PE ratio:
Highest : 74.40
Lowest : 12.80
Industry Composite : 55.10
PE ratio of Everonn on the higher side of price band comes out to 26.17 times and on the lower side of the price band comes out to 23.36 times on the basis of weighted average EPS for the last three years.
PE ratio of the Peer Group
Educomp Solutions : 74.40
NIIT : 145.30
Industry Overview :
India is currently one of the largest markets for School Education in the World. India currently has over 1 million schools providing education from K-12 (kindergarten – Class 12) to over 200 million students. There are over 5 million teachers across India who needs support in training in IT and delivery of Education.
In keeping with its billion-plus population and high proportion of the young, India has a large formal Education System. Its target group (children and young persons in the 6-24 years age group) numbered around 411 million in 2003, or about 40% of the country’s population.
The Government of India has spent over Rs. 10,000 crores on Elementary Education in the country during 2005-06 through its various schemes. Besides this the Government has an outlay of Rs 2563 crores on Higher/Secondary Education during 2005-06. Education in the country is funded through a 2% Education Cess and other Budgetary Allocations.
Business Overview :
The company is a fully integrated Knowledge Management, Education and Training Company offering a range of services that include Creating Educational and Training Content that is globally relevant, Designing and executing large learning initiatives, Setting up the needed infrastructure for learning and training.
The company leads in computer education in schools and colleges and it has partnered with various State Governments to impart computer education in schools and colleges whereby the Computer Lab infrastructure is set by the Company inside the School and College and IT Education is imparted through well trained faculty of the company.
History :
Everonn Systems India Limited was incorporated on 19th April 2000 as a Public Limited Company under the Companies Act, 1956. The Registered Office of the Company, was shifted from Ooty, Tamilnadu to Chennai, Tamilnadu on December 30, 2005, and is situated at 82, IV Avenue, Ashok Nagar, Chennai – 600 083.
Financial Information :
Total income of the Company for the year ended 31st March, 2007 : Rs. 4304.46 lacs
Total income of the Company for the year ended 31st March, 2006 : Rs. 3093.03 lacs
Total income of the Company for the year ended 31st March, 2005 : Rs. 1942.95 lacs
Net profit (after tax) for the year ended 31st March, 2007 : Rs.485.64 lacs
Net profit (after Tax) for the year ended 31st March, 2006 : Rs.490.93 lacs
Net profit (after Tax) for the year ended 31st March, 2005 : Rs.151.13 lacs
Comments :
Another good issue. The shares are being offered in the multiple of 23 to 26 times of the last three years weighted average EPS which is much lower than its peers and industry average. There are not many players in this sector and not much competition is there. The company has collaborated with state Goverenments for imparting computer education in Government Schools and Colleges and therefore it will have a steady growth over a period of time. The past performance of the company is also very consistent. We have recently seen the phenomenol run of Educomp after its listing which is in the same sector. Its a must apply issue for listing gains, short term, medium term and long term.
