According to a media report, Aditya Birla Group is in talks to acquire Educomp Solutions which rose to 4.77% to Rs 34.05 at 11:50 IST on BSE. Meanwhile, the BSE Sensex was down 13.42 points, or 0.05%, to 26,762.27. Also Read - Inspiring! Meerut Woman Who Left Home To Avoid Forced Marriage Returns As PCS Officer 7 Years Later

The stock had outshined the market for nearly past one month untill  September 23, 2014, rising 2.85% compared with 1.35% rise in the Sensex. However, the past one quarter has underperformed the market, falling 15.25% as against Sensex’s 6.97% rise. Also Read - Before Reporting For Duty, This Bengaluru Cop Teaches Children of Migrant Workers Everyday For An Hour

The small-cap company has an equity capital of Rs 24.49 crore. Face value per share is Rs 2. Also Read - Ready to Send Children Back to School? 78% Parents Say No, Willing to Let Kids Repeat An Academic Year

As per the report, the Aditya Birla Group has been in talks to acquire the schools business of Educomp Solutions. Educomp was once the largest diversified education service provider, is now a debt-laden company which is struggling to restructure its business portfolio.

Echelon such as GEMS Education and Zee Learn of Subhas Chandra’s Essel Group have also shown interest in the business. However it is still not certain that they would culminate in a transaction. Educomp has roped in Macquarie Capital as its adviser for a transaction, report added.

Educomp’s subsidiary Educomp Infrastructure & School Management (EISML) runs a nationwide chain of kindergarten to grade 12 schools under three brands. The majority of the schools are company owned. Some of these schools are also operated as franchisees and joint ventures, report said.

Educomp Solutions had reported a net loss of Rs 343.48 crore in Q1 June 2014 compared with net loss of Rs 23.97 crore in Q1 June 2013. Net sales dropped down from 37.6% to Rs 143.64 crore in Q1 June 2014 over Q1 June 2013.

Educomp is one of the largest Education company in India. Educomp group is said to facilitate over more than 22.8 million learners and educators across 34,500 schools.

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