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Educational services provider Educomp Solutions Ltd said will raise up to 6.07 billion rupees by selling shares to institutions, sending its shares soaring more than 13 percent.

Educomp will issue 1.62 million equity shares at 3,745 rupees per share, it said in a filing to the Bombay Stock Exchange.

On Wednesday, two sources told Reuters the company has raised about $100 million through a share sale to institutional investors.

"The money is going to be used for our K-12 (schools) initiative, the higher education as well as the vocational front," Chief Financial Officer Sangeeta Gulati said over the telephone.

Gulati did not say who the investors were: "There was a long list, I think all the best."

Educomp has said it plans to have 150 schools by 2012, spending about 8 billion rupees in the venture. It has 20 schools currently and will add 23 by July 2010, according to a corporate presentation.

It recently sold a 50 percent stake in its vocational training unit to Pearson.

By 10:45 a.m., Educomp shares were trading over 10 percent up at 3,787 rupees, after hitting a high of 3,914 rupees earlier, in a Mumbai market that was up 0.26 percent.

 

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