Educomp to sell 55.41% in engineering test prep venture Gateforum to ASK Pravi PE
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Educomp to sell 55.41% in engineering test prep venture Gateforum to ASK Pravi PE

By Anuradha Verma

  • 21 Jul 2014
Educomp to sell 55.41% in engineering test prep venture Gateforum to ASK Pravi PE

Education company Educomp Solutions Limited has decided to divest its entire 55.41 per cent equity stake in the engineering exam training arm Gateforum Educational Services Private Limited to private equity firm ASK Pravi Private Equity Opportunities Fund for an undisclosed amount, according to a stock market disclosure.

“The transaction completion is subject to fulfillment of customary conditions. An appropriate announcement shall be made on deal completion,” it said in the disclosure.

Secunderabad-based Gateforum Educational Services provides educational services and offers test preparatory tools for graduate aptitude tests for engineering courses. It provides classroom coaching, correspondence courses through online and offline and e-tutor-online classroom coaching.

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Currently, Educomp Solutions is undergoing a corporate debt restructuring programme. Last year it had sold two assets as part of a move to garner resources.

It sold 50 per cent stake in IndiaCan, a vocational training company formed as an equal equity joint venture in 2009 with Pearson Plc, to its foreign partner. Educomp also sold its 50 per cent stake in pre-school chain EuroKids International to a consortium of financial investors led by Gaja Capital Partners.

In mid-day trades, shares of Educomp were quoting at Rs 33.95 a share, up 1.95 per cent on the BSE in a strong Mumbai market on Monday.

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ASK Pravi Private Equity Opportunities Fund is managed by ASK Pravi Capital Advisors, which focuses on investments in lower mid-market companies which benefit from domestic consumption growth. This is the third investment made by the private equity fund in the last one year and the second since January this year.

Previously, the PE firm invested in Hyderabad-based hospital chain Omni Hospitals and also in a kidswear firm named Indian Clothing League. Both these deals were in the $8-10 million range, which could be an indicator of the transaction value of the latest deal.

(Edited by Joby Puthuparampil Johnson)

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