The Initial Public Offering (IPO) of Veranda Learning Solutions will open tomorrow for the subscription. The IPO of Veranda Learning Solutions will remain open till March 31. Should you apply for this IPO? Read this article first and decide.
About Veranda Learning Solution Limited
- Veranda Learning Solutions Limited which is a digital learning platform was incorporated in November 2018. Veranda Learning Solutions is an ed-tech venture from The Kalpathi AGS Group and offers training programs for competitive exams preparation in India, including government job exams like State PSC, Banking/Staff Selection/RRB, IAS, and CA related exams apart from upskilling programs.
- The company is into the business of offering diversified and integrated learning solutions in online, offline hybrid, and offline blended formats to students, aspirants and graduates, professionals, and corporate employees.
- Veranda provides integrated 360-degree training to the students by providing them with comprehensive courses prepared by their content team, which prepares the students for competitive exams. They have engaged experienced and qualified Mentors to provide guidance and support to each of their students and track their progress on a regular basis.
- They are also planning an outlay of around $100 million for acquisitions over the next 6 months.
About Veranda Learning Solutions IPO
- The company has fixed the price band at ₹130-137 per share for its ₹200 crores fresh issue of a public offer for a face value of Rs 10 each. The IPO of Veranda Learning Solutions will remain open till March 31. The bids can be made for a minimum of 100 Equity Shares and thereafter in multiples of 100 Equity Shares.
- The subscription quota is like this, 75% are reserved for the Qualified Institutional Buyers (QIBs) and up to 15% for non-institutional bidders, and 10% of the net offer in Veranda Learning Solutions IPO will be available for retail investors. Veranda Learning Solutions shares will be listed on both BSE and NSE. Promoters will hold 65.9% post issue.
- KFintech Private Limited is the registrar of the IPO and will manage share allocation and refund. Systematix Corporate Services Limited is the manager of the offer.
- According to the sources, the share allotment in Veranda Learning Solutions IPO is likely to be finalized on April 5 and the listing could happen on April 7, 2022.
Rationale behind the Offering
- Through this public offering, the company intends to repay or pre-pay, in part or full of all or certain borrowings up to Rs 60 crore. It will use Rs 25.19 crore towards payment of the acquisition of Edureka and about Rs 50 crore towards growth initiatives. There are no listed companies in India that engage in a business similar to that of Veranda Learning Solutions.
- In its red herring prospectus report, Veranda highlighted that the education sector has been growing at a CAGR of 14 percent over the past decade, due to India’s demographic profile, rapid urbanization, increased educational spending, lack of premium educational institutions, highly competitive market, and low penetration of education.
Veranda Learning Solutions Financials
- The company began operations in 2020. For the six months, ending September 30, 2021, Veranda Learning Solutions had posted revenues of ₹15.6 crores while losses before tax stood at ₹18.4 crores.
| Financials | 6th May 2022 | FY 2021 |
| Revenue from Operations (Rs. crores) | 15.5 | 2.5 |
| EBITDA (Rs. crores) | -15.3 | -7.6 |
| EBITDA Margin (Rs. crores) | -98.7 | -300.6 |
| Profit Attributable to Owners (Rs. crores) | -18.3 | -8.3 |
Last Words
- Investing in IPO is very risky. Further, this company is a loss-making one. Hence, it is better to skip this company and wait for good profit-making companies.
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Disclaimer: Investing in the stock market is always risky. So do not take the stock mentioned in this post as a recommendation in any way. The stock named in this post is for educational purposes only. The author of this post or anyone associated with this blog will not be held responsible in any way if anybody suffers a loss by investing in the stock market after reading this article.