The Tree House Education Company which operates in educational services sector, is coming out with its Initial Public Offering or IPO.
In this article, we will look at the Review, Analysis and Details of the Tree House Education IPO.
Tree House Education IPO: Review Analysis & Details
Some basic details first about the Tree House Education IPO, which are available as of now: Image sourced as screenshot from official website of Tree House Education
- The size of Tree House Education IPO is around Rs 114-129 Crore INR
- The name of the company is Tree House Education & Accessories Limited
- It is primarily in pre-schooling business across the country - currently it is reported to have around 223 preschools spread across 33 Indian cities
- It is also in the educational services to K-12 schools which have around 5000 students in four different cities
What is the issue size of the Tree House Education IPO?
Around 114 to 129 Crore Rs is the size of the Tree House Education IPO, based upon the price band
What is the price band of Tree House Education IPO?
The price band for Tree House Education IPO is Rs. 135 to 153 Rs per share. There will be a final discount of Rs. 6 available to retail investors, that will be once the final price has been decided by 100% book building process.
How many shares will be sold in the Tree House Education IPO?
The total no. of shares to be sold through this IPO is not known.
What are the IPO dates for Tree House Education IPO
The IPO dates for Tree House Education IPO are from August 10, 2011 to August 12, 2011.
How will the capital raised by Tree House Education IPO be used?
It is reported that the capital raised through this IPO will be used for 3 purposes:
- Another 100 pre-schools are planned to be opened through the money collected from this IPO
- There will be investments made in Gujarat and Rajasthan for building educational complexes
- Rest will be for debt payment of the company
See List of All IPO Articles here
Any ratings given to Tree House Education IPO?
No info about that as of now.
What are the analysts recommendations and business results for Tree House Education IPO?
The company seems to be well placed in the education sector. One needs to have a long term view on such stocks for good returns. However, if you look at the stock experts and market experts opinions, there is a mixed response:
SMC brokerage house says that the issue is correctly priced, but maintains a neutral stance on the issue in terms of returns and performance.
Another brokerage house says that this issue should be avoided as the pre-school education sector is heavily crowded and there is a lot of competition for the K-12 schools as well.
There are some opinions about subscribing to this issue, but with a long term perspective, based upon the growing population of India and need for good quality education.
However, one should take the call as per the risk appetite. This issue may not provide quick gains on listing given the highly volatile stock market situations in India and abroad. Investors may need to wait for long term for good fruitful returns on this stock
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