Global Education Ltd Acquires Rishiraj Infravision: Strategic Moves and Stock Split
Global Education Limited has made a strategic move by acquiring Rishiraj Infravision, a new player in the commercial real estate sector. Additionally, GEL proposes to subdivide its equity shares from Rs 5 to Rs 2, aiming to boost business growth and diver
Global Education LtdRishiraj InfravisionStock SplitReal EstateEducational ServicesReal EstateDec 01, 2024
Rishiraj Infravision, a relatively 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 the company's financial performance for the past three years is not available due to its recent inception, the acquisition is anticipated to bring substantial benefits to GEL.
By integrating Rishiraj Infravision into its portfolio, GEL aims 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 expected to contribute positively to the overall performance of GEL.
Additionally, GEL proposes 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 intends 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 now 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 fixed as Tuesday, December 10, 2024.
GEL, established in 2011, is a comprehensive educational service provider and consultancy firm. The company 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 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 and 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
What is the significance of the acquisition of Rishiraj Infravision by Global Education Limited?
The acquisition of Rishiraj Infravision by Global Education Limited (GEL) is significant as it elevates Rishiraj Infravision to the status of an associate company, allowing GEL to expand its business operations and capitalize on opportunities within the real estate market.
What changes will the stock split from Rs 5 to Rs 2 bring to Global Education Ltd?
The stock split from Rs 5 to Rs 2 will result in the creation of two new equity shares for every existing one, increasing the number of shares in the market and potentially making the stock more accessible to a broader range of investors.
What is the current market cap of Global Education Ltd and what is its dividend payout?
Global Education Ltd has a market cap of Rs 366 crore and maintains a healthy dividend payout of 28%. The company has delivered good profit growth of 35.5% CAGR over the last 5 years.
What services does Global Education Ltd offer to its clients?
Global Education Ltd offers a wide range of services including business management consulting, skill development programs, and admission assistance. They also provide infrastructural support, online examinations, marketing, and branding services, along with a variety of products like computer hardware and printed materials.
What are the financial highlights of Global Education Ltd in Q2FY25?
In Q2FY25, Global Education Ltd reported a total income increase of 68.6% to Rs 25.66 crore and a net profit increase of 50.9% to Rs 10.65 crore compared to Q1FY25.
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