Tree House shares again hit upper circuit on Wednesday after the company on Tuesday clarified that there was an error with respect to the promoters’ pledge of shares reported by BSE on their website. On November 20, it had been communicated to BSE that promoters have pledged 2,50,000 shares in one of the promoters’ accounts which was erroneously mentioned as 25,00,000 shares by BSE. This has created unnecessary confusion and concerns among investors.
The company also said that it has successfully received all amounts related to preschools and franchise operations that were outstanding as on 30 September 2015.
Cheering the news the share price of the company hit upper circuit for the second consecutive day. The scrip climbed 9.98 per cent to Rs 184. On Monday, Tree house share price climbed 9.99 per cent to Rs 167.30. For live Sensex updates click here.
In a release, the company said, “At present, outstanding receivables stands at Rs 27 crore as compared to Rs 63 crore as on September 30. The management is focused on continuing its aggressive collections strategy, expected to further reduce overall debtors from this level.”
Tree House continued to operate its business as usual with over 700 preschools spread across the country. The company said, “We reiterate that business growth remains healthy and progressing as per our plans and we are on schedule with our preschool expansion plans.”
On a net worth of Rs 679 crore, Tree House has net debt of only Rs 30 crore while its operating EBITDA was Rs 74 crore in the first half of FY16.
The share price of the company slid 31 per cent to Rs 152.10 on November 30, 2015 from Rs 222.35 on November 20.