EVERONN SYSTEMS INDIA LTD - IPO

Type of Issue : Book Built
Issue Opens: 05 July, 2007
Issue Closes: 11 July, 2007
Issue Size : 3,571,428 (No. of Shares)

Lower Price Band: Rs.125
Upper Price Band: Rs.140
Total Issue Size: RS.50 Crores

Application Multiple: 50 and in multiples there off starting with at least 50 shares.

Maximum Shares: 700(for Retail)

Information URL : http://www.everonn.com/
Prospectus URL : http://www.sebi.gov.in/dp/everonn.pdf

Company Details :
Address : NO. 82, IV AVENUE, ASHOK NAGAR, CHENNAI - 600 083, TAMILNADU..
Email : ipo@everonn.com
Contact Details : 914423718202 /914423718203 /914424717845 (fax)

ISSUE Description:
Company Background:

Everonn is a fully integrated, ISO 9000-2001 Company ensuring quality in the education it imparts. Knowledge Management, Education and Training Company offering a range of services that include

• Creating Educational and Training Content that is globally relevant
• Designing and executing large learning initiatives.
• Setting up the needed infrastructure for learning and training
ESIL is one of the leading players in setting up Virtual and Interactive Learning classroom networks across India to deliver quality and affordable education. We are developing and integrating content for Indian and global audience in schools, colleges, corporates and retail space. ESIL is one of the pioneers of computer education in schools and colleges. ESIL has partnered with various State Governments
to bridge the digital divide. Computer Lab infrastructure is set up by the company inside the School and College and IT Education is imparted through well trained Everonn faculty.

ESIL is a Lead Partner of Hughes Communication India Ltd (HCIL) ((Formerly called Hughes Escorts Communications Ltd) (HECL)) for Hughes Net (Direcway) interactive learning, where management courses from premier management institutes are offered to working executives. The Company has two Strategic Business Units (SBUs)
SBU I: Institutional Education - Infrastructure Services
Setting up IT Education Infrastructure in Schools & Colleges
Delivering IT education in Schools & Colleges.
Offering Turnkey Education and Software Solutions.
Currently have a point of presence in over 1900 schools
Spread across 8 states. Everonn employs more – Corporates than 2000 people
SBU II : Virtual and Technology - Enabled Learning Solutions
ViTELS focuses on providing specialized content through an Interactive remote delivery mechanism. The target audience are Colleges and Schools, Working Professionals, Retail segment.

Management Education from Premier Institutes on Direcway Platform.
Virtual learning through Zebra Kross and Direcway extended to 197 colleges, schools and Retail Centres

Objects of the Issue:

a) Capital expenditure for Institutional Education and IT infrastructure Services. b) Capital expenditure for Virtual and Tech Enabled learning solutions. c) Brand Building exercise for the Company d) Funding the proposed Mergers & Acquisitions activity d) invest in the proposed Subsidiary to Retail Educational aids, tools and other products.

Key Financials for the year ended June 30, 2006
Revenue Rs. 430.44Mln PAT Rs. 48.56Mln
EPS Rs.5.63/- RONW 13.27%


Recommendation :

One of the pioneers in the field of net –based education systems, with a successful and impressive track record. ESIL’s Education Centric technology, content and support infrastructure provision to the schools has enabled it to successfully create a niche in this sunrise education technology field. Apply Aggressively.