Global Education Acquires Rishiraj Infravision: A Debt-Free Multibagger Stock's Strategic Move
Global Education Limited's acquisition of Rishiraj Infravision Private Limited on November 29, 2024, has elevated the latter to an associate company, marking a significant strategic move. GEL also plans to split its equity shares from Rs 5 to Rs 2 each.
Global Education LimitedRishiraj InfravisionStock SplitEducational ServicesReal EstateReal Estate NewsDec 01, 2024
Rishiraj Infravision, a new player in the commercial real estate sector, was incorporated in 2024. The company primarily focuses on buying, selling, and developing real estate properties, including land, buildings, and residential complexes. Although financial data for the past three years is not available due to its recent inception, the acquisition is expected to yield substantial synergies for Global Education Limited.
By integrating Rishiraj Infravision into its portfolio, GEL aims to expand its business operations and achieve significant growth. This strategic move positions the company to capitalize on opportunities within the real estate market and potentially diversify its revenue streams. As Rishiraj Infravision matures and establishes itself in the industry, it is anticipated to contribute positively to the overall performance of Global Education Limited.
In addition to the acquisition, Global Education Ltd (GEL) has proposed to subdivide its existing equity shares from a face value of Rs 5 to Rs 2 each. This will result in the creation of two new equity shares for every existing one. The company also plans to amend its Memorandum of Association to reflect the altered share capital structure. The authorized share capital will remain at Rs 12 crore, but will be divided into 5,97,50,000 equity shares of Rs 2 each and 5,00,000 redeemable preference shares of Re 1 each. The record date for the stock split is set for Tuesday, December 10, 2024.
Global Education Ltd (GEL), established in 2011, is a comprehensive educational service provider and consultancy firm. GEL offers a wide range of services, catering to various organizations, including educational institutions, corporations, and banks. Their expertise spans business management consulting, skill development programs, and admission assistance. From infrastructural support and online examinations to marketing and branding, GEL provides a one-stop solution for educational needs. Additionally, they offer a variety of products, such as computer hardware, tools, and printed materials, primarily serving educational institutions. With a strong network and a clientele that includes industry giants like Capgemini, HCL, and Wipro, GEL has established itself as a reliable and trusted partner in the education sector.
According to recent quarterly results, GEL's total income increased by 68.6% to Rs 25.66 crore and net profit increased by 50.9% to Rs 10.65 crore in Q2FY25 over Q1FY25. In its half-yearly results, the total income increased by 6.5% to Rs 40.88 crore, while net profit decreased by 8.8% to Rs 17.75 crore in H1FY25 over H1FY24.
The company has a market cap of Rs 366 crore and is debt-free. GEL has delivered good profit growth of 35.5% CAGR over the last 5 years and has been maintaining a healthy dividend payout of 28%. The company's shares have an ROE of 40% and an ROCE of 55%. The stock has given multibagger returns of 1,955% in 5 years. Investors should keep an eye on this stock.
Disclaimer The article is for informational purposes only and not investment advice.
Frequently Asked Questions
When was Global Education Limited founded?
Global Education Limited was founded in 2011.
What is the primary focus of Rishiraj Infravision?
Rishiraj Infravision primarily focuses on buying, selling, and developing real estate properties, including land, buildings, and residential complexes.
When was the acquisition of Rishiraj Infravision by Global Education Limited finalized?
The acquisition was finalized on November 29, 2024.
What is the new face value of Global Education Limited's equity shares after the stock split?
The new face value of Global Education Limited's equity shares after the stock split is Rs 2 each.
What is the current market cap of Global Education Limited?
The current market cap of Global Education Limited is Rs 366 crore.
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