Everonn Systems may see a bumper listing

Everonn Systems India, a fully integrated education and learning Solutions Company, will list on the bourses today. The offer price is fixed at Rs 140 per share. Analysts expect the stock to list above Rs 500 levels and advised to book partial profits. The company had come out with a public issue of equity shares of face value of Rs 10 each, for cash at a premium aggregating to Rs 50 crore. The issue, which was a 100% book built issue, was oversubscribed 131 times. The issue received an overwhelming response with the qualified institutional buyers’ portion being oversubscribed by more than 92 times, the retail portion by 124 times and the non-institutional portion by 278 times.

Everonn Systems has budgeted an outlay of Rs 3000 lakh for IT Infrastructure Services. The company plans to expand their operations close to 1000 schools every year. The company will allocate Rs 1725 lakh from their IPO proceeds towards capital expenditure for Virtual and Tech Enabled Learning Solutions. Company would also utilize the funds raised from the IPO towards brand building; funding for proposed Mergers & Acquisitions and to invest in the proposed subsidiary.

Analysts say that it is not exactly the same league as Educomp because the size is very small and the market cap is too less. One will see lot of excitement in the stock. We expect the stock will do the earnings of Rs 13-14 per share for FY09, it can justifies Rs 500 plus easily. If it goes at around Rs 600, then monitor its fundamentals very closely or wait and watch for the coming quarter results, analysts add.