The announcement was made after market hours on Monday, 8 July 2013.
Meanwhile, the S&P BSE Sensex was up 142.66 points, or 0.74%, to 19,467.43.
On BSE, 16,000 shares were traded in the counter as against an average daily volume of 1.72 lakh shares in the past one quarter.
The stock hit a high of Rs 37.25 and a low of Rs 35.50 so far during the day. The stock had hit a 52-week high of Rs 182.70 on 5 October 2012. The stock had hit a 52-week low of Rs 31.75 on 14 June 2013.
The stock had underperformed the market over the past one month till 8 July 2013, sliding 17.01% compared with the Sensex's 0.54% fall. The scrip had also underperformed the market in past one quarter, falling 43.59% as against Sensex's 4.81% rise.
The small-cap company has an equity capital of Rs 24.49 crore. Face value per share is Rs 2.
Educomp Solutions said it has initiated discussions with its lenders and has approached corporate debt restructuring (CDR) forum to restructure its rupee debt to correct the asset liability mismatch on its balance sheet.
The company has also approached the CDR forum for restructuring of debt in its K-12 business (second major business, operated through its subsidiaryEducomp Infrastructure and School Management).
The debt-restructuring exercise will enable the company to comprehensively address the liquidity issues by matching the maturity profile of debt with the relatively long-term nature of its investments. The restructuring will also allow the company to focus on and strengthen its core operations, Educomp Solutions said in a statement.
Last month, rating agency CARE cut the rating on the instruments and bank facilities of Educomp Solutions. CARE cut the rating on the long-term bank facilities of Rs 299.07 crore as well as that on long-term/short-term bank facilities of Rs 410 crore of company. The revision in the ratings of Educomp Solution (ESL) took into consideration the ongoing delays by the company in the servicing of its debt obligations pertaining to the bank facilities on account of a significant deterioration in the company's liquidity position and financial risk profile during the year ended 31 March 2013 (FY 2013), CARE said.
The ratings revision further took into consideration the weak financial performance of the company during FY 2013 characterized by a decline in the operating income, low PBILDT margins and net loss incurred during the year, CARE added. Going forward, the company has plans to reduce its debt levels and improve its liquidity profile by sale of some more non-core assets, including land parcels and the ability of the company to realize proceeds from the same as envisaged would be a key rating sensitivity, CARE said. Furthermore, the ability to improve its operational performance, maintain its market leadership position amidst a competitive scenario and improvement in the performance of its group companies would remain the key rating sensitivities, CARE said.
Educomp Solutions reported consolidated net loss of Rs 147.93 crore in Q4 March 2013, as against net profit of Rs 61.54 crore in Q4 March 2012. Net sales declined 34.5% to Rs 336.41 crore in Q4 March 2013 over Q4 March 2012.
Educomp Solutions is a globally diversified education solutions provider and the largest education company in India. Educomp Group reaches out to over 32,000 schools and approximately 20.9 million learners and educators across the world.
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