ZEE LEARN LIMITED Our Company was incorporated as a public limited company pursuant to a certificate of incorporation dated January 4, 2010 and with Company Identification Number L80301MH2010PLC198405 Registered Office: Continental Building, 135, Dr. Annie Besant Road, Worli, Mumbai, Maharasthra, India - 400018; Corporate Office: 6th Level, Fun Republic, Off New Link Road, Andheri (West), Mumbai – 400 053 Tel. No: +91-22-66971234; Fax: +91-22-24940069 Website:www.zeelearn.com Compliance Officer and Contact Person: Mr. Samir Raval; E-mail: [email protected] Offering of 5,617,977 Global Depositary Receipts each representing 10 Share of par value `1 at an Offering Price of US$ 3.56 per Global Depositary Receipt. Zee Learn Limited (the "Company", the "Issuer" or "ZLL") is offering 5,617,977 Global Depositary Receipts ("GDRs"), each representing Ten (10) equity share of our Company of nominal value `1 each (the "Shares"), at a price of US$ 3.56 per GDR ("Offering Price"). The GDRs will be issued in global form. The GDRs will be represented by a master global depositary receipt certificate (the"Master GDR Certificate"), in registered form, which will be deposited on or about the Closing Date with a common depositary for, and registered in the name of a common nominee of, Euroclear Bank S.A./N.V., ("Euroclear") and Clearstream Banking, société anonyme ("Clearstream" or "Clearstream, Luxembourg"). Beneficial interests in the GDRs represented by the Master GDR Certificate will be shown on, and transfers thereof will be effected only through, book-entry records maintained by Euroclear and Clearstream, Luxembourg. Interests in the Master GDR will be exchangeable for GDRs in definitive form as set out in "Summary of Provisions relating to the GDRs while in Master Form" and "Transfer Restrictions" The GDRs will be issued pursuant to a deposit agreement dated May 22, 2013 (the "Deposit Agreement"), dated the Closing Date (as defined below), between our Company and Deutsche Bank Trust Company Americas as depositary (the "Depositary"). Payment for the GDRs will be required on the Closing Date, which is expected to be May 22, 2013 (the "Closing Date"). Application has been made to list the GDRs on the official list of the Luxembourg Stock Exchange and to have the GDRs admitted to trading on the Euro MTF market (the "Market") of the Luxembourg Stock Exchange. The Shares of our Company are currently listed on the Bombay Stock Exchange Limited (the "BSE") and the National Stock Exchange of India Limited (the "NSE"). Our Company has undertaken to apply to the BSE and the NSE for approval for listing of the Shares represented by the GDRs. The issue of the GDRs was authorised by a resolution of the Board of Directors passed on September 16, 2011 and by a resolution of the shareholders passed on October 19, 2011. Holders of GDRs ("Holders") will have no voting rights in respect of underlying Shares. See "Terms and Conditions of the Global Depositary Receipts" for a description of how rights attaching to Shares will be exercised by the Depositary. The GDRs are of a specific nature and should only be bought and traded by investors who are particularly knowledgeable in investment matters. In making an investment decision, prospective investors must rely on their own examination of our Company and the terms of the Offering, including the risks involved. FOR A DISCUSSION ON CERTAIN INVESTMENT CONSIDERATIONS RELATING TO THE GDRS, SEE "RISK FACTORS". The GDRs are being offered outside the United States to non-U.S. persons in offshore transactions in reliance on Regulation S ("Regulation S") under the U.S. Securities Act of 1933, as amended (the "Securities Act"). The GDRs and the Shares to be represented by the GDRs, have not been and will not be registered under the U.S. Securities Act 1933 as amended and may not be offered, sold or delivered within the United States except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. For a description of certain restrictions on offers, sales and transfers of the GDRs and the Shares, see "Subscription and Sale" and "Transfer Restrictions". The GDRs may not be offered or sold directly or indirectly in India or to, or for the account or benefit of, any resident of India, except as permitted by applicable Indian laws and regulations. A copy of this Prospectus will be delivered to the Registrar of Companies, Maharashtra at Mumbai (the "Registrar of Companies"), the Reserve Bank of India (the "RBI"), the BSE, the NSE and the Securities and Exchange Board of India ("SEBI") for the purposes of record only. LEAD MANAGER First International Group PLC 61-63 Brook Street, London W1K 4HS, United Kingdom Prospectus dated May 22, 2013 TABLE OF CONTENTS IMPORTANT INFORMATION .....................................................................................................................................3 ENFORCEABILITY OF CIVIL LIABILITIES ..............................................................................................................5 PRESENTATION OF FINANCIAL INFORMATION ..................................................................................................6 FORWARD-LOOKING STATEMENTS .......................................................................................................................7 GLOSSARY AND DEFINITIONS .................................................................................................................................8 SUMMARY OF THE OFFERING ................................................................................................................................ 13 SUMMARY OF BUSINESS ......................................................................................................................................... 16 SUMMARY OF FINANCIAL INFORMATION.......................................................................................................... 20 RISK FACTORS ........................................................................................................................................................... 24 PRICE RANGE OF SHARES ....................................................................................................................................... 44 EXCHANGE RATES .................................................................................................................................................... 46 USE OF PROCEEDS .................................................................................................................................................... 47 DESCRIPTION OF SHARE CAPITAL ........................................................................................................................ 48 CAPITALISATION ....................................................................................................................................................... 51 DIVIDEND POLICY..................................................................................................................................................... 52 MANAGEMENT‘S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS............................................................................................................................................................... 53 SUMMARY OF RESTRUCTURING OF OUR BUSINESS ........................................................................................ 64 INDUSTRY OVERVIEW ............................................................................................................................................. 68 BUSINESS .................................................................................................................................................................... 76 OVERVIEW OF LAW REGULATING EDUCATION SECTOR IN INDIA .............................................................. 89 DIRECTORS AND MANAGEMENT .......................................................................................................................... 94 LEGAL PROCEEDINGS ............................................................................................................................................ 105 THE INDIAN SECURITIES MARKET ..................................................................................................................... 107 DESCRIPTION OF THE SHARES ............................................................................................................................ 118 TERMS AND CONDITIONS OF THE GLOBAL DEPOSITARY RECIEPTS ........................................................ 127 SUMMARY OF PROVISIONS RELATING TO THE GDRS WHILE IN MASTER FORM ................................... 144 PLACEMENT AND SALE ......................................................................................................................................... 147 SELLING RESTRICTIONS ........................................................................................................................................ 148 TRANSFER RESTRICTIONS .................................................................................................................................... 151 FOREIGN INVESTMENT AND EXCHANGE CONTROLS ................................................................................... 153 INDIAN REGULATORY APPROVALS AND FILINGS ........................................................................................