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Will divest stake in subsidiary cos soon: Educomp

Wednesday, September 07, 2011


The market was also worried about huge risk of dilution from its FCCBs at Rs 590 a share, due in July 12. The stock had lost close to 30% in last one month although, it was trading in green in the morning trade.

Speaking to CNBC-TV18, Educomp MD and CEO Shantanu Prakash emphasized that the company is not in any kind of financial trouble and the stake sale of its arm and internal accruals will be enough to redeem the FCCBs.....
Educomp Solutions, a publicly listed integrated education company, had the investors worried since the I-T raids on 14 of its residential and business premises in August.

The market was also worried about huge risk of dilution from its FCCBs at Rs 590 a share, due in July 12. The stock had lost close to 30% in last one month although, it was trading in green in the morning trade.

Speaking to CNBC-TV18, Educomp MD and CEO Shantanu Prakash emphasized that the company is not in any kind of financial trouble and the stake sale of its arm and internal accruals will be enough to redeem the FCCBs.

He also clarified the I-T raids were routine and that no discrepancies were found in its books.

Prakash said the company will not raise equity capital at this point of time. "We can look at selling stake in school division," he said adding, "expect stake sale of subsidiaries by FY12-end."
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