India’s largest education company, Educomp Solutions has received the disbursement of $155 million, as a part of the financing package that was announced as on June 19, 2012. Out of the total funds, an amount of $70 million as External Commercial Borrowings (ECB) comprising $30 million was issued by IFC a member of the World Bank Group, $40 million from Societe De Promotion Et De Participation Pour La cooperation Economique (Proparco), a French development financial institution. These ECB have a term of 8.5 years with 3 years of moratorium.
As a part of the package, an amount of $10 million have been issued via Foreign Currency Convertible Bond (FCCB) from IFC, convertible into equity shares of the company at a premium of 40% of the floor price as per SEBI formula. An amount of $50 million have been invested in as equity comprising about $15 million from IFC, $5 million from Proparco and $30 million from funds managed by Mount Kellet Capital Management LP (Mount Kellet) at a price of Rs 149.16 per share ( a premium of 10% to the floor price as per SEBI formula). Lastly out of the total funds received, an amount of $25 million from the promoter group comprising of $15 million of equity and $10 million of equity warrants, at a price of 193.74 per share, representing a premium of approximately 44% to the closing price of the equity shares was issued.
Educomp Solution provides learning solutions to schools, governments, teachers, students and parents. It has research and development center located at Noida that creates quality products and services. The solution is based on education principles that help them to design education systems
