Tree House Education closes listing day in the red

The weak market conditions coupled with negative sentiment prevailing in the markets forced the new listing of Tree House Education and Accessories Limited to slip in the red on the listing day. The shares of Tree House, which listed on the exchanges yesterday on August 26, 2011, initially listed at a discount to the issue price at Rs.132.80 per share, the issue price being fixed at Rs.135 per share

The share went on to touch Rs.161.50 on the BSE at one point of the day, but with overall weakness in the markets soon took its toll and the share crashed to Rs.104.15 as the Intra-day low on the BSE, before concluding the listing day trade at Rs.116.55, at a discount of around 13.67% to the Issue Price. Although there was a special discount of Rs.6 on the Issue Price to the Retail category, Tree House would still show red against its name in investors' portfolio

Tree House Education and Accessories has 223 pre-schools under its brand name 'Tree House' across 33 cities in India. The company intends to utilise the IPO proceeds for expansion of pre-school business; acquisition of office space; procurement of exclusivity rights to provide educational services; construction of infrastructure for educational complexes in Rajasthan and Gujarat and repayment of loan