Archive for December 7th, 2009

EdServ SoftSystems (EdServ) to raise $25million through GDR/FCCB issue

Chennai based Education and Placement Company EdServ SoftSystems (EdServ) has announced that it plans to raise $25miUion through a GDR/FCCB issue. This fund raising process is subject to the shareholder approval at the EGM (Extra-Ordinary General meeting) which will be held in Chennai on 11* January 2010. The GDR/FCCB issue is expected to be completed by the first quarter of next year.

The proceeds of the issue will be utilised to fund the company”s aggressive plans in the Schools segment and Online Tuition services market, tor upgrading the Learning Management System to include Institutions Management Systems, for Content Development, Infrastructure Expansion and towards expanding its presence Pan India in the Higher Education and Career Placement segments. The funds will also be utilised towards the company”s promotion campaign exercise for the roll out Pan India.

As part of its IDEA (Industry Demand Alignment) based education programme for Schools, EdServ will support and guide every student from K-12 to Careers in a Progressive Education Model through a smart learning process. The long term plan is to provide career seeding and mapping for students from as early as the primary and secondary education levels. EdServ”s presence in Higher Education and Careers engagement space will further help achieving the IDEA based education end-to-end to a student so as to get a fitment to the most suited career that is industry demand aligned.

EdServ, through Vidhyadhana Academy of Excellence, plans to expand its presence into 250 EdSchools over the next 12-18months.

Commenting on the plans, S. Giridharan, Chairman and CEO, EdServ said, “We have already got over 50 schools, across Tamil Nadu, interested to sign-up under the Vidhyadhana School model and we expect to roll out our Vidhyadhana Academy programme early next year. We have in the last month expanded our online tuition services to now include Engineering Students as well. Our plan is to invest significantly in building a huge Tutor base across the country in our effort to expand our presence and reach in the Online Tuition Services market.”

Giridharan added, “Our plan is also to expand our presence in the Higher Education segment across India, where we provide academic performance support to colleges, both through the in-campus and outside-campus routes. We plan to upgrade our Learning Management System tool to accommodate School and College Management Systems. Our target is to partner with leading universities across the country and to have a strong pan India presence over the next 12months.”

EdServ currently provides academic support to students of Anna University and Mother Teresa University. EdServ also has relationship with Manonmaniam Sundaranar University,Tirunelveli and is also an Associate Training Provider of Apex Hitech Institute, under DGE&T, Government of India. In September this year, EdServ acquired 2tion.com with an online student base of 50,000 students.

WEEKLY COMMENTARY

Bulls added more strength to precious metals and base metals while energy and most of the agro commodities back pedaled during the last week. Fear of crisis in Dubai resulted in more capital inflow in precious metals, which resulted in nonstop seven week rally in gold.

It made a high of 18294 and $1226.40 on MCX and COMEX respectively. However, in the later part of the week, we saw a halt in rally and prices corrected marginally on Friday. On Friday, December contract expired on MCX, because of which it traded down. Silver followed the footsteps of gold.

Many base metals made higher trading range last week on improvement of economic releases, except nickel. Lead performed better on technical support. Similar to precious metals, base metals saw profit booking on Friday. Red metal copper fell from its 14 months high.

After the release of U.S. inventory data, which showed crude and gasoline inventories jumped last to last week, crude tumbled down. It breached the mark of $76 per barrel last week. Natural gas also slipped for the same reason of inventory rise amid low demand. Guar pack traded sideways to bearish bias in the week gone by.

Upside movement was capped in prices as investors booked their profits at higher levels. However, slack demand in physical market also added bearish sentiment to the market. In spices pack; pepper, jeera and turmeric along with chilli got hammered and settled in red territory.

Chilli futures settled down for the fourth consecutive week on account of reducing participation in the physical market. Harvesting of fresh produce has already been started and the ongoing dry weather is favorable for the post harvesting activities.

Turmeric prices once again settled down as demand is not picking up and traders are waiting for the arrival of fresh stock which may add bearish momentum to the trend. After witnessing three week rally, pepper prices cooled down in the week gone by on an account of profit taking and continuity of weak export demand.

Jeera futures which got under pinned and gained for seven straight weeks also took a breath of relief and settled down in absence of fresh cues due to closure of major spot market at Unjha for some local festivals.

Lack of buying activity on the futures platform also led to the fall in prices. In oil seeds section; soya bean futures started the week with positive note but later on some profit booking at higher levels pressurized prices to settle near the opening price. Mustard seed futures ended the week on positive note on firm demand in spot market.