Share price of one of the largest education syllabus-based supplementary content providers slumped by 3 percent on BSE to Rs. 154.8 in the morning trading session of Thursday, after announcing partial divestment in K12 Techno Services Private Limited for Rs. 225.18 crore.
With a market capitalisation of Rs. 3,534.6 crore, at 10:37 a.m., the shares of Navneet Education Limited were trading in the red at Rs. 157.55, down by 1.28 percent.
According to the latest regulatory filings with the stock exchanges, Navneet Learning LLP, a subsidiary of Navneet Education Limited, entered into a definitive agreement on May 8 for divestment of its partial stake in K12 Techno.
Navneet Learning LLP has entered into a definitive agreement with Venturi Partners to divest a 5.12 percent stake in K12 Techno for a consideration of Rs. 225.18 crore, on a fully diluted basis.
Venturi Partners is an investment platform that provides growth funding to customer-centric, purpose-driven brands in India and Southeast Asia, with a focus on education, healthcare and fast-moving consumer goods.
Navneet Learning LLP has invested a total of Rs. 118.6 crore in K12 Techno, and this divestment represents the company’s first partial exit from the company’s stake, which aligns with the value creation thesis that the company had initially planned when investing in K12 Techno.
In terms of financials, the company’s revenue from operations fell by 2.08 percent from Rs. 264.27 crore in Q3 FY22-23 to Rs. 258.76 crore in Q3 FY23-24, accompanied by a decline in after-tax profit from Rs. 30.7 crore in Q3 FY22-23 to a loss of Rs. 22.5 crore in Q3 FY23-24.
The stock has delivered positive returns of nearly 47.3 percent in the last one year and around 14 percent in the last six months. So far in 2024, the company has given about 1.7 percent of positive returns.
As of March 2024, FIIs hold 3.67 percent of the shares, whereas DIIs hold 12.45 percent of the shares in the company, aggregating to 16.12 percent of the institutional holdings.
Navneet Education Limited is one of the largest education syllabus-based supplementary content providers for the state board-based curriculum and provides quality content across Print and Digital mediums. The company also offers Scholastic Paper and Scholastic Non-paper stationery and publishes General and Children’s books.
Written by Shivani Singh
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