Tree House Education and Accessories is in the business of providing education.The stock reached its new high of Rs 146.50 at 12.12 p.m. The stock witnessed volumes of over 8 million shares.
Rajesh Bhatia, Managing Director of Tree House Education and Accessories was quoted by media agencies that 'the company had raised total debt of Rs 28.5 crores and will use the IPO proceeds to pay the whole debt.'
The initial public offer of the company was to raise Rs 129 crore. Among the key investors of the company are Matrix Capital Partners and Foundation Capital.
During the pre-IPO placement period, the company had sold shares at Rs 150 a share in order to raise Rs 19 crore. After the issue process is completed, the promoters share holding in the company would come down by 25%.
The aim of raising the IPO was to fuel the expansion of the pre-school business, procurement of exclusivity rights to provide educational services, acquisition of office space, set-up educational complexes in Gujarat and Rajasthan. Also a part of the fund will be used for loan repayment.