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 February 5, 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).

The company’s headquarters is in West Mambalam, Chennai, India.[2] As of March 2011, it had 10 offices and 35 centres across India. It employed thousands 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 February 5, 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 February 9, 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

YearMar ‘06[11]Mar ‘07[11]Mar ‘08[11]Mar ‘09[11]Mar ‘10[11]
Total Revenue (Rs. lakhs)40183968585,268
EBITDA (Rs. lakhs)1983456743,051
Net Income (Rs. lakhs)2312533691,802
EPS (Rs./share)10.080.169.023.0715.01

Timeline

Sr. No.DateEvents
1Mar 13, 2001Lambent Systems Private Limited founded by Mr. S. Giridharan[3]
2Oct 03, 2001Lambent signed as a partner by Microsoft for Exchange Solutions[12]
3Dec 05, 2001Company name changed to Lambent Softsystems Private Limited[3]
4Feb 13, 2002Infosys Technologies granted staffing solutions contract to Lambent[13]
5Jun 07, 2002ERP product develop programme MERU launched by Lambent[3]
6Aug 18, 2005Sun Microsystems (India) Private Limited signed up for authorized Java education partnership[3]
7Sep 23, 2005Oracle signed up for authorized education partnership[12]
82007ELMAQ education acquired by Lambent Softsystems Private Limited[13]
9Jan 09, 2008Company name changed to EdServ Softsystems Private Limited[13]
10Jan 28, 2008HEADS model launched by EdServ[12]
11Apr 22, 2008Conversion into a public limited company and company name changed to EdServ Softsystems Limited[12]
12Feb 05, 2009IPO issued by EdServ Softsystems Limited[1]
13Mar 12, 2009Online Placement Campus launched by EdServ[14]
14Apr 21, 2009Power Partner Model launched by EdServ with a view to target 1 million job positions
15Jun 12, 2009EdCademy, the academic in-campus support programme for Engineering & Management students launched by EdServ[15]
16Jul 02, 2009Mother Teresa University gives LoI to EdServ to implement EdCademy[16]
17Jul 23, 2009Complete implementation of EdCademy Assessment Engine for Anna University by EdServ[17]
18Sep 30, 20092tion.com acquired by EdServ Softsystems Limited[6]
19Oct 08, 2009Training deal from Government of India granted to EdServ[18]
20Nov 10, 2009'VIDHYADHANA', the Academy of Excellence for schools launched by EdServ[19]
21Dec 07, 2009$25 million raised by EdServ through GDR / FCCB issue[20]
22Jan 27, 2010EdServ becomes VTP of Ministry of Labour, GoI[21]
23Feb 23, 2010SchoolMate acquired by EdServ Softsystems Limited[7]
24Mar 02, 2010SmartLearn Web TV acquired by EdServ Softsystems Limited[8]
25Mar 19, 2010‘LAMPSGLOW’ education service portal launched by EdServ[22]
26Mar 30, 2010Sparkling Mind acquired by EdServ Softsystems Limited[9]
27Jun 03, 2010EdServ’s Vidhyadhana Academy signs MOU with 40-year-old city school.[23]
28Aug 25, 2010EdServ strikes e-training Partnership with Canadian Company[24]
29Oct 06, 20105 Year Gujarat Government Training Deal granted to EdServ[25]
30Jan 25, 2010CA Online Training on lampsglow.com launched by EdServ[26] 31Sep 27 2013HC appoints official liquidator[27]

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://articles.economictimes.indiatimes.com/2009-08-19/news/27651622_1_brand-building-edserv-ceo-s-giridharan-warrants
  16. ↑ http://www.business-standard.com/india/news/edserv-softsystems-hits-5-upper-circuit/13/56/66452/on
  17. ↑ http://www.equitybulls.com/admin/news2006/news_det.asp?id=57775
  18. ↑ http://articles.economictimes.indiatimes.com/2009-10-08/news/27662000_1_s-giridharan-edserv-mes
  19. ↑ http://www.moneycontrol.com/stocks/stock_market/corp_notices.php?pno=4&autono=293861&tab=peers
  20. ↑ http://profit.ndtv.com/news/show/edserv-softsystems-to-raise-funds-17732?schedules=india
  21. ↑ http://gujarati.economictimes.indiatimes.com/cmpnewsdisp.cms?companyID=22745&newsid=337083
  22. ↑ http://profit.ndtv.com/news/show/edserv-launches-lampsglow-education-service-portal-31237
  23. ↑ http://m.pressmart.com/Home.aspx?event=TNewInExpress&dt=04062010&page=004_055&mdl=
  24. ↑ http://www.moneycontrol.com/stocks/stock_market/corp_notices.php?pno=2&autono=358866
  25. ↑ http://www.business-standard.com/india/news/edserv-in-skills-training-dealgujarat-govt/410445/
  26. ↑ http://articles.economictimes.indiatimes.com/2011-01-25/news/28426264_1_ceo-s-giridharan-education-and-placement-services-edserv-chairman
  27. ↑ "HC appoints official liquidator in Edserv payment case | Business Standard News". Business-standard.com. Retrieved 2016-12-01.
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