Four s fortnightly education track 15th march - 31st march 2012
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

Four s fortnightly education track 15th march - 31st march 2012

on

  • 559 views

Four-S Services - Research

Four-S Services - Research

Statistics

Views

Total Views
559
Views on SlideShare
559
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Four s fortnightly education track 15th march - 31st march 2012 Document Transcript

  • 1. Vol. 46, 15th Mar’12 – 31st Mar’12 Four-S EDUTRACK Fortnightly Update on Indian Education Sector In the Spotlight ContentGovt invites private companies to start secondary schools In the Spotlight 1Following a road map laid out in the budget, the Union governmenthas invited proposals from companies to open secondary schools. Thehuman resource development (HRD) ministry has sought expressions Investment Activity 2of interest from companies in joining the public-private partnership(PPP) project to open 2,500 schools over the next five years. Private News and Policy Development 3entities will procure the land, and design, develop, operate andmanage the schools while the government will offer a 25%infrastructure grant and the recurring cost of education for students Corporate Developments 4sponsored by it. Under the Right to Education Act, at least 25% of aschool’s students can belong to underprivileged families and areentitled to free education. The government will pay for their schooling. Stock Market Performance 5According to details in the ministry’s documents, even companies Peer Benchmarking 6without any experience in education can bid to open schools. “Acorporate entity would be eligible for one school for every `250mn networth subject to interest bearing deposit of `5mn each for up to three About Four-S Services 8schools and `2.5mn per school thereafter,” it said. An education firmalready running at least one Central Board of Secondary Education(CBSE) school—from which at least two consecutive batches havegraduated from class X—can qualify for three schools under the PPPproject. Firms with schools that have not scaled up to the class X levelwill be eligible for one school, the ministry said in the documentexplaining the eligibility framework. A company can qualify for threeschools if it has run educational institutes for five years and can deposit`2.5mn for each school. While the interest from the deposits willaccrue to the government, the capital will be released to the companyin three annual installments after the school starts operation. About Four-S Services Four-S Services is Indias leading provider of Research, Financial Consulting and Investment Banking services with offices in Gurgaon, Mumbai and Bangalore. We have a proven track record of consistently delivering high quality solutions, enabling our clients to improve the effectiveness of decision making and acting as a catalyst in achieving business success. We have executed more than 120 mandates across diverse range of industries including Education, Financial Services, Infrastructure, M&E, IT-ITeS, Auto and Auto ancillaries, Retail, Real Estate and Textile etc Our Services:  Strategy Consulting  Research Support  Business Planning  Valuation Services  Investment  Investor Relations & IPO ConsultingResearch Desk Banking For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com Page | 1
  • 2. FOUR-S EDUTRACK Investment activity Private Equity Date Investor(s) Target Stake (%) Amount ($Mn) Business Stage 23-Feb-12 Omidyar Network Anudip Foundation NA 0.7 Vocational Training Early 23-Feb-12 Mumbai Angels CarveNiche Tecnologies NA 0.2 e-learning Early 22-Mar-12 Omidyar Network EnglishHelper NA NA Vocational Early 22-Mar-12 Omidyar Network Akshara Foundation NA 1.0 K-12 Education Early Content 20-Mar-12 Hyderabad Angels Edutor Technologies NA 0.4 Early Development Mergers & Acquisitions Date Acquirer Target Stake (%) Amount ($Mn) Targets Business 10-Nov-11 TIME Veta 51% 12.1 Supplemental Education 9-Nov-11 Reliance Industries Extramarks Education Ltd 39% NA Supplemental Education 14-Dec-11 Career Launcher GK Publications NA NA Publications Divya Knowledge Process 1-Feb-12 Comp U Learn Tech India 100% NA Education Services Management 15-Feb-12 Aptech Syntea SA 8.3% NA Education Services *Only last few deals listed above M&A Deals PE Investments Investment Amount (in $mn) No. of Deals Total Transaction Value (in $mn) No. of Deals 90.0 10 9 6 6 80.0 70.0 8 5 5 5 60.0 6 4 4 In $mn 50.0 In $ mn 40.0 4 3 3 4 4.8 2 30.0 2 2 20.0 10.7 2 80.8 1 1 10.0 0.0 0.0 0 0 0 2011 2012 2011 2012 Four-S Indian PE Directory 2011 – “A Guide to choosing private equity partners“  Detailed listing of ~330 Active PE/VC Investors in India - PE/VC players that have invested in the past 3 years.  A first-of-its-kind, the directory offers “Deal History” in India for individual investor.  Management, investment profile and Contact details.  User-friendly Spreadsheet Format.  It comes from Four-S Services, the most trusted deal information bank in India.Research DeskFour-S Services is Indias leading provider of high-end research, financial consulting and Investment banking services. We have executed projects forprestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PEFunds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com Page | 2
  • 3. FOUR-S EDUTRACK News and Policy Development UGC to devise AICTE-like rules for foreign varsity tie-ups India to roll out common entrance medical exam from 2013 Keen to forge collaborations between Indian and foreign India is all set to roll out NEET for medicine admissions from varsities with or without Foreign Education Providers Bill, the 2013-14. For Under Graduate (UG) programs, exam will be Union HRD ministry has asked the University Grants conducted by the Central Board of Secondary Education Commission (UGC) to formulate regulations for facilitating (CBSE) while it will be the National Board of Examination entry of foreign education providers in India. A UGC (NBE) that will conduct the Post Graduate (PG) exams. The committee is being set up to devise these regulations, which Union health ministry has informed state governments that are likely to be on lines of twinning formula of the All India their existing reservation policies would not be disturbed Council for Technical Education (AICTE). The AICTE has drawn under the proposed scheme and state wise eligibility merit up rules for collaboration and partnerships between Indian lists will be prepared for the respective state authorities to and foreign institutes in the field of technical education and admit students for admission in accordance with their students enrolled for these courses can complete semesters admission criteria in the institutions located in the respective in partner institutes. Under similar UGC regulations, a foreign states. The qualifying criterion has been changed from university would not be able to come to India and set up a percentage of absolute marks to percentile to ensure that no standalone full-fledged campus on its own, it can however, do seat remains unfilled. NEET would mean a single entrance so in collaboration with an Indian institute. Students enrolled examination will be held for MBBS and MD courses offered will be able to complete one semester in the Indian institute by all 271 medical colleges. These colleges offer over 31,000 and complete the rest in the foreign institute. seats for MBBS courses and another 11,000 seats for PG degrees. AICTE says no to new institutes 76% RTE violations remain unresolved. The All India Council of Technical Education (AICTE) has decided to put a blanket ban on opening up of new Two years after the governments flagship education engineering and management colleges across the country programme came into force, its monitoring body has not from academic session 2013-14. India has nearly 3,500 been able to resolve as much as 76% cases of violation of the management schools and over 4,000 engineering colleges. right to education (RTE) Act, an RTI document reveals. The directive has come after the Council found that the supply Promising free and compulsory education to children from is outstripping the demand for engineering and management the age group of 6 to 14, the Right of Children to Free and st seats in the country. According to note from credit rating firm Compulsory Education Act came into force on 1 April 2010. CRISIL, the average occupancy rate declined in 2011-12 to An RTI query reveals that over the last two years, the NCPCR around 67% for engineering colleges and about 65% for received 2,850 complaints regarding the RTE Act. However, it business schools. has been able to resolve just 692 cases, or just 24% of the entire lot by now. Banks to rate institutes for providing Education Loans World Bank offers $500mn loan for education in India To tide over their bad loans and structure their loan products in a better way, banks will now rate B-schools and other The World Bank has offered $500mn interest-free credit to educational institutions. In a recent meeting between banks India for improving the standards of secondary education. and over 150 education institutes, it was decided that Indian The World Bank credit will help the Indian governments Banks Association (IBA) will come up with a rating model for efforts to make good quality education available, accessible institutes. The process may take about six months. and affordable to all young people at the secondary level (grades 9 and 10). The project will support all activities as envisioned in the $12.9bn Rashtriya Madhyamik Shiksha Abhiyan (RMSA) programme, a flagship government of India programme for gradual universalization of secondary educationResearch DeskFour-S Services is Indias leading provider of high-end research, financial consulting and Investment banking services. We have executed projects forprestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PEFunds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com Page | 3
  • 4. FOUR-S EDUTRACK Corporate Development Azim Premji Trust to sell `15.3bn worth Wipro shares to fund Mexus Education partners with St. Xavier’s group of Schools education in Uttar Pradesh The endowment created by Azim Premji, one of the worlds Mexus Education, a leading education technology solutions most generous philanthropists, will sell `15.3bn worth of provider has partnered with St. Xaviers group of Schools in shares gifted to it by the Wipro founder to fund an expansive Uttar Pradesh to complement the learning environment and non-profit education initiative close to the heart of the philosophy of the Group. These schools have opted for software billionaire. The Azim Premji Trust, which was gifted technology integration to further leverage the creativity of 213mn shares of Wipro in December 2010 (valued then at students by creating a complete learning environment. All `88.5bn), will sell 35mn of them, the first time it is doing so the 45 schools of The Group spread over Varanasi, Allahabad, since the endowment was created. The money will be used to Lucknow and other areas in Uttar Pradesh have opted for fund the expansion of Azim Premji Foundation, which is digitization through partnership with Mexus. These schools working to improve teaching and learning in some of Indias have opted for complete school solutions including Iken most backward districts. It will also help the Azim Premji Library for a digital classroom, Iken Evaluate for remote- University scale up its teaching and research work. based objective test, Iken Learning Labs to introduce hands- on conceptual understanding. GIMS introduces 3D education in India CL Educate ties up with NEC to provide free MBA entrance Geo Information and Modeling Solution (GIMS) (Google ATC) coaching is introducing 3D education in India. For the promotion of the 3D education the company is looking for partners and is tying CL Educate, a leading education services provider in India, has up with Local Resource Centres across the country via signed a MoU with the North Eastern Council (NEC) to franchise route. There are plans to introduce Google Sketch provide MBA entrance preparation in the North Eastern up and 3D technology in 1,000 schools and to educate one Region. The joint initiative aims to encourage economic and lakh children every year. social development of the North Eastern Region by providing impetus to the growth of the youth. As a part of this Helix PE-backed MT Educare IPO Oversubscribed 4x programme CL Educate will prepare 200 students for MBA entrance examinations (CAT/MAT) in Arunachal Pradesh, MT Educare, a Mumbai-based K-12 tutoring and test Nagaland, Mizoram, Sikkim and Agartala. The candidates will preparation firm, has seen its initial public offering be chosen on merit basis and will be coached and mentored oversubscribed more than 4 times priced at `74-80 a share. by CL Educate, free of cost, for 6 months in a 7 hr, 6 days MT Educare is backed by India-focused private equity firm intensive coaching program. The first batch of the Helix Investments who would be making 2.5x returns (on the programme is scheduled to start from April 2012. upper end of the price band) in the part-exit from its four- and-a-half-year-old investment. MT Educare had launched the Shiv Nadar University announces collaboration with Babson maiden public float with a mix of fresh issue and offer for sale College of USA by the financial investor. At the upper end of the price band, the company is eyeing a valuation of `3.15bn, a little over 39x The Shiv Nadar University today announced a partnership its one-year-old earnings, `80mn. The company is looking to with Babson College, the worlds no. 1 business school for raise up to `350mn through fresh issue of shares. entrepreneurship to offer global leading programs in Entrepreneurship Education to India. Babsons MBA program has been ranked no.1 for entrepreneurship for 19 consecutive years by U.S. News & World Report. Programs will commence in 2013. Students completing the programs successfully will obtain a degree issued by Shiv Nadar University and a certificate from Babson College.Research DeskFour-S Services is Indias leading provider of high-end research, financial consulting and Investment banking services. We have executed projects forprestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PEFunds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com Page | 4
  • 5. FOUR-S EDUTRACK Stock Market Performance Market Cap Price Percentage Price Change (`mn) (In `) 1 Week 1M 3M 6M 12M Core Education 31,717 282 0.8% 3.6% 8.7% -3.7% -7.4% Educomp 18,560 193 -0.6% -8.3% -3.6% -13.7% -55.1% Navneet 13,805 58 -1.9% 2.9% 9.1% -11.0% 2.2% NIIT Ltd 8,940 54 10.4% 15.1% 41.2% 20.6% -5.7% Tree House 7,154 212 3.6% 1.7% 20.9% 21.6% - Everonn 5,684 261 -4.0% -9.1% -22.0% -24.2% -47.5% Zee Learn 3,868 15 -0.7% 5.1% 16.8% -21.9% 25.5% Aptech 3,781 78 -6.4% -9.5% 11.0% -34.7% -25.0% Career Point 3,518 194 -0.9% -13.2% -8.4% -28.6% -42.7% Compucom 920 12 -3.8% -12.6% -9.1% -27.2% -33.4% Edserv 757 29 -11.4% -17.3% -28.6% -66.9% -64.6% Jetking 312 53 -3.8% -10.3% 5.8% -22.0% -53.7% Peer Benchmarking Interim Results Revenues EBITDA PATFigures in Rs mn Year Ending Fiscal year Quarter Current Last Year % growth Current Last Year % growth Current Last Year % growthEducomp March 2011-12 Q3 3,738 3,680 2% 963 1,632 -41% 246 967 -75%NIIT Ltd March 2011-12 Q3 2,501 3,007 -17% 251 370 -32% 407 129 216%Core Education March 2011-12 Q3 4,793 2,946 63% 1,905 1,050 81% 1,027 579 77%Navneet March 2011-12 Q3 841 746 13% 57 101 -43% 40 62 -35%Everonn March 2011-12 Q3 922 1,153 -20% 159 439 -64% -105 189 -155%Aptech March 2011-12 Q3 432 481 -10% 52 61 -15% 59 33 78%Edserv March 2011-12 Q3 151 313 -52% 18 146 -88% 5 115 -96%Career Point March 2011-12 Q3 214 185 16% 88 60 49% 115 54 110%Compucom March 2011-12 Q3 169 207 -18% 92 117 -21% 21 26 -20%Zee Learn March 2011-12 Q3 125 98 27% -110 4 NA -126 3 NATree House March 2011-12 Q3 213 - 110 - 61 -Jetking March 2011-12 Q3 79 94 -16% 13 29 -54% 6 19 -70% Annual Results Revenues EBITDA PAT % EBITDA % PATFigures in Rs mn TTM Quarter TTM Y0 TTM Y-1 % growth TTM Y0 TTM Y-1 % growth TTM Y0 TTM Y-1 % growth margin marginEducomp Q3 FY12 14,664 11,942 23% 4,754 4,915 -3% 2,248 2,594 -13% 32% 15%NIIT Ltd Q3 FY12 14,359 11,882 21% 1,522 1,664 -9% 765 468 63% 11% 5%Core Education Q3 FY12 14,536 10,327 41% 5,740 3,739 53% 3,141 2,095 50% 39% 22%Navneet Q3 FY12 5,932 5,536 7% 1,348 1,256 7% 845 783 8% 23% 14%Everonn Q3 FY12 4,037 3,954 2% 1,284 1,356 -5% 216 579 -63% 32% 5%Aptech Q3 FY12 1,782 1,743 2% 177 168 5% 977 72 1253% 10% 55%Edserv Q3 FY12 1,201 1,008 19% 357 452 -21% 205 337 -39% 30% 17%Career Point Q3 FY12 777 761 2% 257 295 -13% 298 247 21% 33% 38%Compucom Q3 FY12 703 678 4% 416 367 13% 125 106 17% 59% 18%Zee Learn Q3 FY12 546 - -169 - -199 - -31% -36%Tree House Q4 FY11 392 214 84% 176 69 153% 92 26 254% 45% 23%Jetking Q3 FY12 339 408 -17% 57 118 -51% 27 85 -68% 17% 8% Research DeskFour-S Services is Indias leading provider of high-end research, financial consulting and Investment banking services. We have executed projects forprestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PEFunds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com Page | 5
  • 6. FOUR-S EDUTRACKFour-S Services Pvt LtdFounded in 2002, Four-S has a strong & successful track record of genuine, accurate andobjective advice to top Indian & global companies & PE Firms. Four-S has already provensuccess in corporate finance, strategy consulting, fund-raising, investment banking andinvestor relations mandates with 100+ corporates and large PE funds. Four-S, trusted advisor to top Indian & Global Cos Offering comprehensive bouquet of services to SMEs, Corporates and PE FundsResearch DeskFour-S Services is Indias leading provider of high-end research, financial consulting and Investment banking services. We have executed projects forprestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PEFunds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com Page | 6
  • 7. FOUR-S EDUTRACK About Four-S Services Four-S Services provides customized business and financial research to organizations across the globe. The company also provides Investor Relations consulting to corporate based on in-depth sectoral and company research. The company has an impressive client profile and a team of senior analysts covering key sectors including Finance & Banking, IT & Telecom, Retail, Media & Entertainment, Pharmaceuticals, Infrastructure and Manufacturing amongst others. For further information on the company please visit www.four-s.com Disclaimer The information contained herein has been obtained from sources believed to be reliable but is not necessarily complete and its accuracy cannot be guaranteed. No representation, warranty, guarantee or undertaking, express or implied, is made as to the fairness, accuracy or completeness of any information, projections or opinion contained in this document or upon which any such projections or opinions have been based. Four-S Services Pvt Ltd. will not accept any liability, whatsoever with respect to the use of this document or its content. This document has been distributed for information purposes only and does not constitute or form part of any offer or solicitation of any offer to buy or sell any securities. This document shall not form the basis of and should not be relied upon in connection with any contract or commitment whatsoever. This document is not to be reported or copied or made available to others. The Company may from time to time solicit from, or perform consulting, or other services for, any company mentioned in this document.Research DeskFour-S Services is Indias leading provider of high-end research, financial consulting and Investment banking services. We have executed projects forprestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PEFunds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com Page | 7