Four-S Weekly Edutrack 16th May - 22nd May,2011 | Investment Banking | Tech Start Ups

Vol.

XXXIII, 16th May’11 – 22nd May’11

Four-S EDUTRACK
Weekly Update on Indian Education Sector

In the Spotlight
Govt may allow education bodies to float bonds
The ministry of human resource development (MHRD) is considering allowing educational institutions to float bond issues for fund generation. The government is also contemplating National Education Finance Corporation (NEFC), which can also tap such resources. A th comprehensive strategy for the scheme will be worked out for the 12 Five Year plan. However, to allow Indian universities to raise money via bonds, some important changes will be required. Educational institutions in India can be set up only by trusts, societies or companies. For a long time, the Centre has been experimenting with ideas to plug the funding gap in higher education. The move may require modifications in the Companies Act, especially those relating to the formation of companies under Section 25, as well as state laws relating to the way charitable trusts are allowed to function. Internationally, donation of land and shares are accepted by universities to help create an endowment. Universities in the US and the UK, including Harvard, Stanford, Cambridge and Princeton, meet their financial needs and finance important projects cheaply via bond issues. These universities need ratings from a credit agency while going for the bond issue. Getting a rating from credit rating companies will compel educational institutions to be more careful about their investment plans, as well as cash flows. The latter will require educational institutions to increase their fees or trim their offerings as and when required, in order to remain financially attractive and get a good rating.

Content
In the Spotlight Investment Activity News & Policy Update Corporate Developments Stock Market Update Peer Benchmarking About Four-S Services 1 2 3 4 5 5 6

A good rating, in turn, allows educational institutions to avail of loans at a cheaper rate. Rating agencies, including CRISIL and CARE, have already begun rating B-schools in India. Going ahead, CARE may also rate engineering colleges in the country. The move may allow educational institutions to offer their assets, including their corpus, as collateral for meeting important investment outlays.

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For further information, please contact Seema Shukla at seema@four-s.comPage | 1 us as http://www.four-s.com or reach

3 Education Services E-Learning Pre-Schools/K-12 Schools Stage Growth Early Growth ON Mauritius. only to see an equally sharp and heartwrenching fall in 2009. Ltd Stake (%) Amount ($Mn) Business NA NA NA 11.0 4.0 120. We have executed projects for prestigious Indian as well as global corporations.com or reach us as http://www. For further information.four-s. venture capitalists and hedge funds including India’s Top 5 PE Funds. investment banks.0 80.0 60.0 9 In $mn 100.1 6. Four-S Annual Report provides a detailed analysis.3 7 6 5 4 6 In $ mn 3 10. IDG Ventures & Kaplan Target Maharana Infrastructure & Professional Services iProf Learning Solutions India Pvt. the past five years have seen a wild roller coaster ride for PE investments in India . PE players in India spent 2010 doing what they were supposed to do – putting money to work and showing meaningful returns to LPs before they could bargain for fresh funds. of Deals 160.0 20. recovering to reach $8.3 YTD'10 54. Ltd Mergers & Acquisitions Date 20-Sep-10 17-Jan-11 25-Feb-11 Acquirer Core Projects & Technologies Pearson Educomp Solutions Target Keenan & Keenan Group Tutorvista Gate Forum Educational Services Stake (%) Amount ($Mn) NA 10 59% 127 NA NA Target's Business Education Services Tutoring/Test Prep Test Prep *Only last 3 PE deals and M&A deals have been highlighted above Year-to-date PE Investments Investment Amount (in $mn) No. private equity funds.0 0.0 7 136. Matrix Partners Tree House Education and India & Foundation Capital Accessories Pvt.0 140.13bn across 328 disclosed transactions from the low of $4.25 bn across 250 deals made in 2009 – a healthy rise of ~90%. financial consulting and Investment banking services.FOUR-S EDUTRACK Investment activity Private Equity Date 7-Apr-11 19-Apr-11 3-May-11 Investor(s) Matrix Partners Norwest Venture Partners. of Deals Year-to-date M&A Deals 10 9 8 7 6 5 4 3 2 1 0 Total Transaction Value (in $mn) No. Research Desk Four-S Services is India's leading provider of high-end research. please contact Seema Shukla at seema@four-s. In fact.com Page | 2 .5 180 160 140 120 100 80 60 40 20 0 160.3 YTD'10 YTD'11 3 2 1 0 YTD'11 Four-S Indian Private Equity Report-2010 Year 2010 saw Private Equity (PE) investments in India turn the corner.0 40.with the good times being in 2007 when investments crossed a huge $19bn.

This will include students of management. computer application and hotel management among others. engineering. private equity funds. In the first phase. a company will be able to raise a query or post its requirement and select students who fit the job. to create jobs opportunities. All the technical institutions would have to get themselves delinked from their parent universities and affiliated to AKU. Simultaneously. investment banks. Draft statutes governing its executive business. The board has sent a proposal to the Centre seeking funds to link every government school with Eduset. Maharashtra has a similar policy. We have executed projects for prestigious Indian as well as global corporations. The board has decided to make one conference hall for a cluster of 100 schools. the number of such halls would be increased. GU seeks to start India's first dual degree system According to the new policy being proposed by the AP state government. though the existing rules permit students to take up a degree course and a diploma course together. The state already has the highest number of engineering colleges in the country (707) and an intake of 2. especially in rural areas. For instance. demanded that it should be allowed to confer two degrees simultaneously to its students. SC ruling on unrecognized medical courses The Gujarat University has. the newly set up technical university in Bihar got its statutes approved by the state government.FOUR-S EDUTRACK News Update & Policy Developments RBSE seeks funds to link schools with Eduset AICTE to create database to facilitate student-industry interaction Rajasthan Board of Secondary Education will see a complete makeover in coming years. then he or she would not be entitled to practice.com Page | 3 . A bench of justices R V Raveendran and A K Patnaik dismissed the Medical Council of India's (MCI) contention that allowing such students to practice would open the Pandora‘s Box for unscrupulous medical colleges to operate in India without recognition. The Union and state government will together bear the cost of this project. infrastructure and facilities they offer. where fee structure differs from college to college based on the quality of faculty. Inspired by the tenth plan of UGC that propagates parallel education system. The process of affiliation of existing medical and engineering colleges in the state with this university would start soon. The AICTE is tying up with the Confederation of Indian Industry (CII) for this initiative. based on the quality of faculty.85 lakh seats. colleges with higher ‘grades’ will command a higher fee and colleges with poor grades will have a low fee structure.com or reach us as http://www.000 industries as part of this project. in a proposal to the University Grants Commission (UGC). For further information. architecture. which will be linked to an industry database. which will be available on the AICTE website. infrastructure and other facilities offered to students. and it plans to link the fee structure with the grades. please contact Seema Shukla at seema@four-s.four-s. where the students can get access to quality education from the national framework. the Gujarat University (GU) vice-chancellor (V-C) has sought permission to give dual degrees. B. C and D from the top. venture capitalists and hedge funds including India’s Top 5 PE Funds. The state government has decided to grade the engineering colleges as A. Grades to fix technical college fee The All India Council for Technical Education (AICTE) is in the process of creating a database of final year students studying across various technical institutes in the country. HRD approves AKU statutes Medical students who do part of their study from an unrecognized Indian college cannot be denied recognition if they have completed remaining part of their study in a foreign country from a recognized institution. the Council has a database of 8. duly approved by the university court were submitted to the HRD department more than two months back for its approval. students will be able to mark their resume to a particular industry. as per their qualification and area of interest. the Supreme Court has ruled. There will be a standard format of curriculum vitae (CV) and students’ details will be fed into the database. Aryabhat Knowledge University (AKU). At present no university in the country as per the UGC norms can allow a student to study for two degrees simultaneously. Research Desk Four-S Services is India's leading provider of high-end research. Currently. pharmacy. These online conferences would also be an answer to the faculty crunch. Eduset is also known as education satellite exclusively for education. The apex court said if a student has done his entire course from an unrecognized medical college in India. The cost of the project is estimated to be around `5bn. one conference hall will be made for a cluster of schools but gradually. financial consulting and Investment banking services.

with features like time schedule. The company launched CAT ONLINE. private equity funds. research and development. inspiring value-based education. Sharda University. investment banks. BSE Training Institute Ltd. mConnect is a mobile support in a dynamic testing environment. negative marking among others BSE Training Institute Ltd.four-s. Through this partnership ICoFP would impart job oriented education to prospective students under the monitoring and guidance of Jadavpur University. Research Desk Four-S Services is India's leading provider of high-end research. financial consulting and Investment banking services. which will be jointly certified by the two affiliates. We have executed projects for prestigious Indian as well as global corporations. one of the most prestigious universities in India. please contact Seema Shukla at seema@four-s. The CD has tips and techniques video by Arun Sharma.in has 30 hours live classroom sessions and access to further classes.a unique augmented product that integrates the print.8mn euro higher education funding for India Tata McGraw-Hill launches CAT ONLINE Announcing a €22.mindworkzz. a CD. Bosch is setting up a "Robert Bosch Centre for Research in Cyber Physical Systems". live classroom training and mobile support for training for CAT. the company said in a statement.. The product consists of a printed book. and support the entire industry through contract research projects. easy to download application.8mn higher education funding for India. the market leading provider of educational materials in India since 1970. was recognized and awarded as the ‘Best Private University’ at the recently held Indian Education Awards 2011. electronic.com Page | 4 . Sharda University bags ‘Best Private University’ award Sharda University was recognized and awarded as the ‘Best Private University’ at the recently held Indian Education Awards 2011. Internationally renowned Fraunhofer-Gesellschaft would support the ten-year development project. The classes will be held at BTI's premises in BSE and the program shall commence in June 2011. has announced its partnership with International College of Financial Planning (ICoFP). The Program selected for the same is Post Graduate Diploma in Financial Planning TM (PGDFP). mobility solutions and renewable energy. is the only educational institute in the country offering this specialized course specifically designed for the study of Financial Markets for working professionals. inks MOU with Indian Institute of Management Indore The Centre for Rural & Cryogenic Technologies. For further information.com or reach us as http://www. signed MOU with Indian Institute of Management Indore (IIM Indore) on 18th April 2011 for launching PG Certificate Program in Capital Markets and other certificate programs in Mumbai. venture capitalists and hedge funds including India’s Top 5 PE Funds. Jadavpur University. Jadavpur University launches financial planning courses Tata McGraw-Hill Education. today announced a path breaking innovation for all CAT aspirants across the country. Navneet Publication eyes inorganic acquisition prospects Navneet Publication. mock tests and a walkthrough on how to join the online classes. The printed book is a comprehensive support system for the CAT aspirants with coverage of all sections supported by plenty of practice exercises. The centre would create an ecosystem of research and working environment for future engineers. recorded classes. PGDFP is a one-year full time program which will train young graduates for a financial services career. The online resource at www.) This would be a first-of-its-kind research centre and would promote applied research in the chosen domains of cyber physical systems. Priced at a reasonably affordable `1295/-. an institute of excellence.FOUR-S EDUTRACK Corporate Development Bosch announces €22. online and mobile medium for preparation for CAT. one of India’s premier institutes for careers in financial services. BTI backed by Bombay Stock Exchange Ltd. at the Indian Institute of Science (IISc. a market leader in the publishing and stationary business is eyeing acquisitions in content-related services and tutoring business. Asia's oldest exchange. the educational aid is the first of its kind in the country to integrate all conceivable forms of training. Indian Education Awards 2011 were organized by Franchise India.

7% -4.0 7074.5% -5.4% Peer Benchmarking Figures in ` millions.630 2.1 22.6 75.1 310.246 4.7 471.9 7934.6% -7.5% -14. investment banks.9% 11.6 989.0% 12.4% -3.6 800.0% 16.3 198.3% -36.9 2017.7 90.0% 15.9 410.5 224.5% -20.799 9.5 155.6 200.8 PAT Q3 FY’11 378.1 79.3 273.5% 102.6 197. financial consulting and Investment banking services.8% 27.9 280.1 311.7 1152.0 3366.1 414.9 5.7 251.0 611.8% 12M -13.0 786.1 799.6 471. consolidated financials Companies NIIT Educomp Core Projects Navneet Everonn Aptech Edserv Career Point Compucom Jetking Visu Greycells Q3 FY’10 2950.8 82.4 116.2% -26.5% -6.3% -9.7 3495.8% -22.0 PAT YTD FY’11 922.910 225 1.8 YoY 4% 22% 31% 3% 54% 48% 155% 28% 14% -11% -37% 43% EBITDA YTD FY'10 YTD FY’11 1569. 1 Week -5. please contact Seema Shukla at seema@four-s.9 146.9 -8.3 4.0 -40.com Page | 5 .439 5.1 16.9 412.0% 10. private equity funds.7% -1.5 93.2 240.8 24.2 302.6 25.8 19.6 129.9 1.3 616.6% -4.0 121.2% -17.4 289.1 227.4 52.8 19.2 2942.0 694.3 147.com or reach us as http://www.1 275.6 1889.4 76.0% -30.5 76.2 61.4% 8.4% -5.2 61.9% -19.9 29.0 109.0 8621.1 EBITDA Q3 FY’11 405.4 1183. For further information.7 -206.5 2908.5 33.7 368. We have executed projects for prestigious Indian as well as global corporations.9% -5.7 YoY 10% 37% 34% -6% 44% 56% 101% 15% 42% -10% -36% 11% Q3 FY’10 475.3 117.5% -12.0 1493.1 76.2% -28.2 313.9 118.0 4.5 Revenue YTD FY’11 12483.6 YoY 2% 4% 42% 16% 49% 2% 119% 35% 20% -21% 7% NA YTD FY'10 702.1 1547.8 YoY -15% 10% 49% 3% 57% 20% 92% 33% 56% -23% 12% 15% Q3 FY’10 247.9% -9.0 1910.1% -23.6 52.0 207.7 75.5% -2.4 1036.0 3575.4% 99.1 579.2 108.7% -15.930 10.9 439.7% -0.6 151.1 4.5 25.3 Revenue Q3 FY’11 3237.8% -8.9% -1.5 26.4 75.709 32.2% -37.1 2.650 621 111 Price (In ` ) 416 567 56 95 145 62 294 326 38 21 105 3 Percentage Price Change 1M 3M 6M -9.9% -1.9% -6.2 540.0 1650.0 189.8 81.5% 2.0% -0.0 20. venture capitalists and hedge funds including India’s Top 5 PE Funds.1% -4.7 404.6 22.6 2688.4% Educomp Everonn NIIT Ltd Aptech Edserv Navneet Core Projects Career Point Greycells Compucom Jetking Visu Intl.8 102.8 5.0 1593.2 1462.5% -14.6% -7.5 167.7 950.2 53.0 2198.252 14.0 2601.7% 4.1 51.2 162.four-s.1 167.4% -0.1 300.5 6079.0 81.3 YoY 53% 58% 41% -2% 56% 27% 105% 45% 32% -24% -57% 138% Margins Q3 FY’11 EBITDA NPM 13% 12% 46% 27% 36% 20% 18% 8% 38% 16% 13% 7% 47% 37% 55% 39% 56% 12% 31% 20% 42% 4% 19% 17% Companies NIIT Educomp Core Projects Navneet Everonn Aptech Edserv Career Point Compucom Jetking Visu Greycells YTD FY'10 11993.7% 1.3% -5.8 57.4 302.0 4.4 115.8% 49.5% -0.0 38.5% -33.7% -34.FOUR-S EDUTRACK Stock Market Performance Market Cap (` mn) 39.1% -12.1 477.8 707.4 103.4 0.7 YoY 31% -9% 31% 19% 43% NA 133% 38% 20% -18% -70% NA Margins YTD FY’11 EBITDA NPM 13% 7% 41% 22% 36% 20% 18% 9% 36% 14% 16% 8% 46% 34% 51% 35% 56% 17% 33% 20% 38% 3% -8% -37% Research Desk Four-S Services is India's leading provider of high-end research.0 967.4 238.2 56.1 1052.7 348.6% -4.0 2109.6 2865.6% 3.0 2607.2 171.5% -45.8 1006.

Four-S has a strong & successful track record of genuine. strategy consulting. Four-S has already proven success in corporate finance. investment banking and investor relations mandates with 100+ corporates and large PE funds.Four-S Services Pvt Ltd Founded in 2002. Corporates and PE Funds Research Desk Page | 6 . accurate and objective advice to top Indian & global companies & PE Firms. Four-S. trusted advisor to top Indian & Global Cos Offering comprehensive bouquet of services to SMEs. fund-raising.

please contact Seema Shukla at seema@four-s. venture capitalists and hedge funds including India’s Top 5 PE Funds.four-s. express or implied. Research Desk Four-S Services is India's leading provider of high-end research. whatsoever with respect to the use of this document or its content. or other services for. This document is not to be reported or copied or made available to others. The company also provides Investor Relations consulting to corporate based on in-depth sectoral and company research. This document shall not form the basis of and should not be relied upon in connection with any contract or commitment whatsoever.com Page | 7 . financial consulting and Investment banking services.com or reach us as http://www. is made as to the fairness.FOUR-S EDUTRACK About Four-S Services Four-S Services provides customized business and financial research to organizations across the globe. warranty. any company mentioned in this document. IT & Telecom. Retail. private equity funds. will not accept any liability. Media & Entertainment. investment banks. The Company may from time to time solicit from. The company has an impressive client profile and a team of senior analysts covering key sectors including Finance & Banking. accuracy or completeness of any information.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. For further information. 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. We have executed projects for prestigious Indian as well as global corporations. No representation. For further information on the company please visit www. Infrastructure and Manufacturing amongst others. Four-S Services Pvt Ltd. Pharmaceuticals. or perform consulting.four-s. guarantee or undertaking. projections or opinion contained in this document or upon which any such projections or opinions have been based.

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