Edserv in pact to expand chartered accountancy coaching

MUMBAI (Reuters) - Edserv Softsystems said on Tuesday it has entered into a partnership with CAClubIndia, which will help the education services company expand its chartered accountancy examination coaching to about 600,000 students.

Shares of the company, which the market values at $44.92 million, jumped as much as 6.3 percent to 136.45 rupees in a firm Mumbai market. At 11.18 a.m., shares were up 4.95 percent at 134.70 rupees.

Edserv will get 70 percent of the revenue generated through this partnership, while CAClubIndia will keep the rest, Chairman and Chief Executive S. Giridharan told Reuters.

"This financial year alone we are targeting about 300 million rupees," he said.

Edserv had forayed into the online chartered accountancy coaching segment through a 50:50 joint venture with Sreeram Coaching Point in January and expects the overall business to generate revenue of 2 billion rupees over two years.

The company is also focusing on launching chartered accountancy coaching services in the Middle East and will continue to look at more such tie-ups and acquisitions, Giridharan said.

"Currently, we are also looking at tie-ups for entrance examinations such as TOEFL, GRE and CAT," he added.

(Reporting by Manasi Phadke; Editing by Sunil Nair)