Shares of this education company surged around 10 percent in Monday’s trading session after receiving approval from NCLT in the matter of the ongoing Scheme of Arrangement. The shares have delivered more than 60 percent return to its shareholders in one year.
With a market capitalisation of Rs. 384 crores, the shares of Career Point Ltd started Monday’s trading session positively at Rs. 197.60 compared to its previous close of Rs. 196.05. The shares hit a high of Rs. 214.90, gaining around 10 percent and currently trading at Rs. 212 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that the Hon’ble NCLT Chandigarh had passed the first motion order in the matter of the ongoing Scheme of Arrangement between Srajan Capital Limited (Transferor Company), Career Point Limited (Demerged Company) and Career Point Edutech Limited (Resulting Company after this approval).
Earlier, the board of directors in their meeting held on 14th February 2023, had approved a composite scheme of arrangement. Career Point Edutech Limited (wholly owned subsidiary) of Career Point will be demerged and will be merged with Srajan Capital Limited.
The objective of the scheme is to provide a simplified and streamlined group structure along with efficient management control by separating education and non-education businesses in different listed entities.
Coming onto the company’s financial statements, the revenue declined by 31 percent from Rs. 29 crores during the June quarter to Rs. 20 crores in the September quarter. In addition, the net profits decreased by 25 percent from Rs. 16 crores to Rs. 12 crores during the same timeframe.
The company delivers its classroom training programs through a physical network of company-operated learning centres. It currently has 4 branches.
Furthermore, the company operates franchisees centres wherein it enters into an agreement, granting a license to operate centres and use the “Career Point” brand within a specified territory for a fixed period with 23 branches.
Headquartered in Mohali, Career Point Limited is an Indian education company established in 1993. It has diversified products and integrated services in both regulated and non-regulated education segments including preschool, School Education, test prep, Higher Education, e-Learning and Vocational Education.
Written By Vaibhav Patil
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