Educomp Solutions to merge with Edu Smart Services

Mumbai: Educomp Solutions Ltd on Tuesday said it plans to merge Edu Smart Services Pvt. Ltd with itself and issue shares to lenders on conversion of its funded interest term loan, as part of its debt recast. The firm had approached the corporate debt restructuring (CDR) forum in July 2013.

Edu Smart is a subsidiary of Educomp, and provides technical services to schools. Educomp claims to be the largest education company in India.

As of 30 September, Educomp had a consolidated debt of ₹ 3431.70 crore, according to data from Capitaline.

On 17 November, the firm had said that under the CDR scheme, Shantanu Prakash, a promoter, has infused ₹ 30 crore till then, as promoter contribution in the form of an unsecured loan.

“The said loan, on the later date, will be discharged by the company by issuance of equity or equity related instruments or otherwise, in terms of CDR scheme of the Company,” Educomp had said then.

On Tuesday, shares of Educomp ended at ₹ 29.55, 3% above its previous close on the BSE while the benchmark Sensex ended fell 0.6% to end at 27425.73 points.