EdServ Softsystems Limited

EdServ Softsystems Limited
Public Limited Company
Traded as BSE: 533055
NSE: EDSERV
Industry Computers-Software-Education-
Training
Founded Chennai, India (2001 (2001))
Key people
 Mr. S. Giridharan (ex director)
Website www.edserv.in

EdServ Softsystems Limited is one of the online education companies in India. Founded in 2001 by Mr. S. Giridharan, EdServ is an education company which makes use of technology to meet the education and employment needs of the people.

EdServ went for IPO on Feb 05, 2009.[1] Currently, it is delisted from major stock exchange markets in India namely Bombay Stock Exchange (BSE: 533055) and National Stock Exchange of India (NSE: EDSERV).

Company’s headquarters office is located in West Mambalam, Chennai, India.[2] As of March 2011, it had 10 offices and 35 centres across India. It employed 1000s of people, excluding the distributors and dealers network of the company. Currently, the company is wound up by a Madras Highcourt order and the assets and liabilities are taken over by the official liquidator.

History

Formerly known as Lambent Softsystems Private Limited (Company was re-christened to M/s EdServ Softsystems Limited on as late as April 22, 2008[3]), EdServ was incorporated by Mr. S. Giridharan in 2001 with a view to provide training solutions, customized software solutions, staffing solutions and placement consulting to both Corporate as well as Institutional clients (IT, Healthcare, Banking, Financial Services, Manufacturing, Retail sectors etc.).[1][3] At that time, it was mainly focused on IT learning and placement solutions.

For the financial year 2007-08, EdServ registered revenue of Rs. 3.95 crore with adjusted net profit of Rs. 2.92 crore. Next year, for the six-month period ending September 2008, firm recorded revenue of Rs. 4.34 crore with an adjusted net profit of Rs. 1.82 crore.[4]

The company got wound up by a Madras Highcourt order in the year 2013 because the company was unable to repay the loans of a creditor by name M/s. India Factoring.[5] Currently the official liquidator of the Madras Highcourt has sealed the premises and has become the principal contact point for the company.

IPO

EdServ went for IPO on Feb 05, 2009. CARE, a credit rating agency in India, assigned an IPO Grade 1 to EdServ IPO, which meant that company had ‘poor fundamentals’. Accordingly, IPO got lukewarm response on the first two days from the investors. But till the end of IPO on Feb 09, 2009, IPO got oversubscribed by 1.3 times in spite of poor ratings from CARE.[4]

Acquisitions

EdServ, in its initial years, was mainly focused on IT training and placement solutions. After IPO, it began concentrating on online education sector. Intent on moving into an Education and Training space, it made series of acquisitions in the following years; namely 2tion.com (Sep 30, 2009),[6] SchoolMate (Feb 23, 2010),[7] SmartLearn WebTV (March 2, 2010),[8] Sparkling Mind (March 30, 2010) & StudentGateway (December 26, 2012).[9]

Business model

EdServ’s business model is based on the following four pillars

  1. Humanware Education And Deployment System (HEADS): HEADS is a patented learning model which connects learning with placements.
  2. Trademarked content: All content is copyrighted. Part of the content is indigenous and the rest is third party copyright content.
  3. e-learning and patented education models: EdServ has many patented education models like HEADS, Vidhyadhana, etc.
  4. New product development and acquisitions: Since its inception, EdServ has acquired different online education companies.

Products

EdServ provides education across all fields, from K-12 to careers through Industry Demand Aligned education with career orientation. Lampsglow, 2tion, Vidhyadhana, SmartLearn WebTV, SchoolMATE, AreaPartner are some of the products under EdServ umbrella.

Competitors

There are many online education organizations in India. Of those, Educomp Solutions, Aptech, Examsguru, Everonn Education and NIIT are EdServ's main competitors.[10]

Key financial data

Year Mar ‘06[11] Mar ‘07[11] Mar ‘08[11] Mar ‘09[11] Mar ‘10[11]
Total Revenue (Rs. lakhs) 40 18 396 858 5,268
EBITDA (Rs. lakhs) 19 8 345 674 3,051
Net Income (Rs. lakhs) 23 1 253 369 1,802
EPS (Rs./share) 10.08 0.16 9.02 3.07 15.01

Timeline

Sr. No. Date Events
1 Mar 13, 2001 Lambent Systems Private Limited founded by Mr. S. Giridharan[3]
2 Oct 03, 2001 Lambent signed as a partner by Microsoft for Exchange Solutions[12]
3 Dec 05, 2001 Company name changed to Lambent Softsystems Private Limited[3]
4 Feb 13, 2002 Infosys Technologies granted staffing solutions contract to Lambent[13]
5 Jun 07, 2002 ERP product develop programme MERU launched by Lambent[3]
6 Aug 18, 2005 Sun Microsystems (India) Private Limited signed up for authorized Java education partnership[3]
7 Sep 23, 2005 Oracle signed up for authorized education partnership[12]
8 2007 ELMAQ education acquired by Lambent Softsystems Private Limited[13]
9 Jan 09, 2008 Company name changed to EdServ Softsystems Private Limited[13]
10 Jan 28, 2008 HEADS model launched by EdServ[12]
11 Apr 22, 2008 Conversion into a public limited company and company name changed to EdServ Softsystems Limited[12]
12 Feb 05, 2009 IPO issued by EdServ Softsystems Limited[1]
13 Mar 12, 2009 Online Placement Campus launched by EdServ[14]
14 Apr 21, 2009 Power Partner Model launched by EdServ with a view to target 1 million job positions[15]
15 Jun 12, 2009 EdCademy, the academic in-campus support programme for Engineering & Management students launched by EdServ[16]
16 Jul 02, 2009 Mother Teresa University gives LoI to EdServ to implement EdCademy[17]
17 Jul 23, 2009 Complete implementation of EdCademy Assessment Engine for Anna University by EdServ[18]
18 Sep 30, 2009 2tion.com acquired by EdServ Softsystems Limited[6]
19 Oct 08, 2009 Training deal from Government of India granted to EdServ[19]
20 Nov 10, 2009 'VIDHYADHANA', the Academy of Excellence for schools launched by EdServ[20]
21 Dec 07, 2009 $25 million raised by EdServ through GDR / FCCB issue[21]
22 Jan 27, 2010 EdServ becomes VTP of Ministry of Labour, GoI[22]
23 Feb 23, 2010 SchoolMate acquired by EdServ Softsystems Limited[7]
24 Mar 02, 2010 SmartLearn Web TV acquired by EdServ Softsystems Limited[8]
25 Mar 19, 2010 ‘LAMPSGLOW’ education service portal launched by EdServ[23]
26 Mar 30, 2010 Sparkling Mind acquired by EdServ Softsystems Limited[9]
27 Jun 03, 2010 EdServ’s Vidhyadhana Academy signs MOU with 40-year-old city school.[24]
28 Aug 25, 2010 EdServ strikes e-training Partnership with Canadian Company[25]
29 Oct 06, 2010 5 Year Gujarat Government Training Deal granted to EdServ[26]
30 Jan 25, 2010 CA Online Training on lampsglow.com launched by EdServ[27] 31 Sep 27 2013 HC appoints official liquidator[28]

References

  1. 1 2 3 http://www.chittorgarh.com/ipo/ipo_detail.asp?a=194
  2. ↑ http://www.indiainfoline.com/Markets/Company/Fundamentals/Management-Discussions/Edserv-Softsystems-Ltd/533055
  3. 1 2 3 4 5 6 http://www.moneycontrol.com/company-facts/edservsoftsystems/history/ES08
  4. 1 2 http://www.vccircle.com/500/news/edserv-ipo-the-first-issue-in-past-four-months-scrape-through
  5. ↑ Ministry of Corporate Affairs, Official Liquidator office, accessed 29 November 2014
  6. 1 2 http://www.thehindu.com/business/companies/article26999.ece
  7. 1 2 http://articles.economictimes.indiatimes.com/2010-02-23/news/27620641_1_schools-s-giridharan-edserv-chairman-and-ceo
  8. 1 2 http://www.business-standard.com/india/news/edserv-buys-smartlearn/387294/
  9. 1 2 http://www.vccircle.com/500/news/edserv-buys-pre-school-business
  10. ↑ http://www.moneycontrol.com/competition/edservsoftsystems/comparison/ES08#ES08
  11. 1 2 3 4 5 http://www.moneycontrol.com/financials/edservsoftsystems/profit-loss/ES08
  12. 1 2 3 4 http://www.sharekhan.com/stock-market/company-details/company-profile/history/Edserv-Softsystems-Ltd/13191166.00/EDSERV/history.htm
  13. 1 2 3 http://economictimes.indiatimes.com/edserv-softsystems-ltd/infocompanyhistory/companyid-22745.cms
  14. ↑ http://www.hindu.com/2009/03/15/stories/2009031555271200.htm
  15. ↑ http://www.pressreleasepoint.com/edserv-targets-1-million-live-job-positions-its-placement-campus
  16. ↑ http://articles.economictimes.indiatimes.com/2009-08-19/news/27651622_1_brand-building-edserv-ceo-s-giridharan-warrants
  17. ↑ http://www.business-standard.com/india/news/edserv-softsystems-hits-5-upper-circuit/13/56/66452/on
  18. ↑ http://www.equitybulls.com/admin/news2006/news_det.asp?id=57775
  19. ↑ http://articles.economictimes.indiatimes.com/2009-10-08/news/27662000_1_s-giridharan-edserv-mes
  20. ↑ http://www.moneycontrol.com/stocks/stock_market/corp_notices.php?pno=4&autono=293861&tab=peers
  21. ↑ http://profit.ndtv.com/news/show/edserv-softsystems-to-raise-funds-17732?schedules=india
  22. ↑ http://gujarati.economictimes.indiatimes.com/cmpnewsdisp.cms?companyID=22745&newsid=337083
  23. ↑ http://profit.ndtv.com/news/show/edserv-launches-lampsglow-education-service-portal-31237
  24. ↑ http://m.pressmart.com/Home.aspx?event=TNewInExpress&dt=04062010&page=004_055&mdl=
  25. ↑ http://www.moneycontrol.com/stocks/stock_market/corp_notices.php?pno=2&autono=358866
  26. ↑ http://www.business-standard.com/india/news/edserv-in-skills-training-dealgujarat-govt/410445/
  27. ↑ http://articles.economictimes.indiatimes.com/2011-01-25/news/28426264_1_ceo-s-giridharan-education-and-placement-services-edserv-chairman
  28. ↑ "HC appoints official liquidator in Edserv payment case | Business Standard News". Business-standard.com. Retrieved 2016-12-01.

External links

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