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DB Corp To Pick Minority Stake in DMC Education

29 June, 2011

Ad-for-equity media investor DB Corp, that publishes Dainik Bhaskar newspaper, is investing Rs 2.67 crore in DMC Education Ltd. DMC Education (earlier known as DMC International) had diversified from its original business of real estate to education sometime back and has been actively snapping small firms to build its presence in the sunrise sector.

Warburg Pincus-backed DB Corp will subscribe to  one zero  per cent fully convertible debentures of the company having a par value of Rs 2.67 crore. This will be compulsorily convertible into equity shares at the end of one year from the date of allotment.

DMC Education scrip rose 5.84 per cent to close at Rs 10.88 at BSE on Wednesday, in a firm Mumbai market.

At the last traded market price, DB Corp will end up with 9.7 per cent in DMC Education on conversion of the debentures(not counting other outstanding convertible securities), according to  VCCircle estimate.

The company will spend the subscription amount for advertisement and brand building.

DMC Education has sewn a string of similar ad-for-equity deals with other media groups over the past year. Last August it announced that it has entered into a debenture subscription agreement with HT Media Ltd(that published the Hindustan Times)for a deal worth Rs 1.5 crore through fully convertible debentures. 

Late last year DMC Education also struck a similar deal worth Rs 2.67 crore with Times of India Group through a convertible debenture issue. 

DMC Education is into the fast growing field of providing training for various entrance examinations. It seeks to establish itself across India in the supplemental education market.

Last month it had acquired PLANSTEPS, a 14 year old education consulting and carrier counseling firm for Rs 4.5 crore (~$1 Million). The firm had last year also acquired Vsoft, a Mumbai based Indian language software development company, for Rs 1.5 crore. Vsoft Services Pvt Ltd, was promoted by Rajiv Prakash Khare (M.Tech-IIT, Mumbai) is the pioneer in development of Indian bilingual software.

One year ago it also in talks to snap Quest Tutorials, a specialized coaching firm in the IIT-JEE segment, that was started in 2002 by two IITians, Praveen Tyagi and Gaurav Mittal. However, the transaction didn’t go through. 

 


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4 Comments
Gaurav Mittal . 5 years ago

Quest Tutorials never got merged with DMC Education Ltd. There were talks for the same but nothing was ever solemnised. It was supposed to get merged. The deal fell through because DMC did not honour its commitments.

TEAM VCC . 5 years ago

Thanks for pointing that out Gaurav. We did not spot any fresh disclosures on the stock exchange related to the transaction that was announced, so missed out on the information. We have updated the article.

vishal . 5 years ago

Hi Gaurav,

Please provide the details about shareholding pattern of the company,which is decreased by more than 30% in last 2Q

Regards,

Vishal

Gaurav Mittal . 5 years ago

Thanks for updating.

DB Corp To Pick Minority Stake in DMC Education

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