March 31, 2022 05:53 PM
Veranda Learning Solutions is going to open its maiden public offer for subscription soon. This would be the fifth IPO to be launched in the calendar year 2022, after AGS Transact Technologies, Adani Wilmar, Vedant Fashions, and Uma Exports.
Veranda IPO subscribed 3.53 times on the final day of bidding:
The Veranda Learning IPO is subscribed 3.53 times on Mar 31, 2022 . The public issue subscribed 10.76 times in the retail category, 2.02 times in the QIB category, and 3.87 times in the NII category.
Veranda IPO subscribed 74 percent on the second day of bidding:
The initial public offering (IPO) of Veranda Learning Solutions had been subscribed 1.31 times, garnering bids for 1.51 crore equity shares against an offer size of 1.17 crore equity shares, by the morning of March 30, the second day of bidding.
Retail investors who bid 7.00 times their allotted quota continued to show interest in the public issue. The portion set aside for non-institutional investors has been subscribed 1.06 times and that of qualified institutional buyers 0.28 times.
Veranda IPO subscribed 74 percent on the first day of bidding:
The initial public offering of Veranda Learning Solutions has been subscribed 74 percent so far on March 29, the first day of bidding, as investors bid for 80.81 lakh shares against the offer size of 1.17 crore shares.
The offer size has been reduced from 1.45 to 1.17 crore shares after the company mopped up Rs 46.75 crore from three anchor investors on March 28.
The firm is planning to raise Rs 200 crore through its public issue.
Retail investors have bid for 4.15 times of their quota, while non-institutional investors have bid for 85percent shares of their reserved portion. The portion set aside for qualified institutional buyers was subscribed 5 percent
Veranda IPO: GMP
According to market observers, Veranda Learning IPO GMP (grey market premium) is not available as the stock is yet to make its debut in the grey market.
Here are 10 key things to know before subscribing to the public issue:
Veranda IPO Dates:
The bidding for the offer will open on March 29 and the last day would be March 31. Anchor book will open for a day on March 28.
Veranda IPO Price Band:
The company has fixed a price band at Rs 130-137 per equity share for the offer.
The public issue comprises equity shares worth Rs 200 crore by the company. It means the company will issue 1.53 crore equity shares at the lower price band and 1.45 crore shares at the higher price band.
Objectives of Issue:
The net proceeds from the offer will be utilised for repaying debts (Rs 60 crore), payment of acquisition cost or loans related to Edureka (Rs 25.19 crore), and growth initiatives (Rs 50 crore).
Investors’ Reserved Portion and Lot Size:
Up to 75 percent of the total offer is reserved for qualified institutional buyers, 15 percent for non-institutional bidders, and the remaining 10 percent for retail investors.
Bids by investors can be made for a minimum of 100 equity shares and in multiples of 100 shares thereafter. With this, retail investors can make a minimum application for shares worth Rs 13,700 and their maximum application cost would be Rs 1,91,800 (for 14 lots).
Chennai-based Veranda Learning Solutions started its operations in December 2020, offering diversified and integrated learning solutions to students, professionals and corporate employees who appeared for career-defining competitive exams, professional courses, exam-oriented courses, short term upskilling and reskilling courses.
It primarily provides these services through online, offline hybrid and offline blended learning models. These services are offered by the company through its four wholly owned subsidiaries Veranda Race Learning Solutions (Veranda Race), Veranda XL Learning Solutions (Veranda CA), Veranda IAS Learning Solutions (Veranda IAS), and Brain4ce Education Solutions (Edureka).
Promoters — Kalpathi S Aghoram, Kalpathi S Ganesh and Kalpathi S Suresh — with a collective experience of over 40 years in the education sector, started their entrepreneurial journey in 1991 with the establishment of SSI, a listed entity which in April 2003 had hived off its education division and merged it with Aptech Limited. In July 2004, the IT services division was demerged and merged with Scandent Solutions Corporation. Now promoters do not hold any interest or rights in SSI.
Promoters have 89.22 percent shareholding in the education services provider and the rest is held by the public.
Veranda does not have a long history as it started off operations in December 2020. In the financial year ended March 2021, it recorded a loss of Rs 8.3 crore on revenue of Rs 2.54 crore and in the six months period ended September 2021, the loss stood to Rs 18.3 crore on increased revenue of Rs 15.46 crore.
The non-current liabilities, which are generally due after a year or more, stood at Rs 169.91 crore including borrowings of Rs 123.78 crore, while current liabilities, which are payable within a year, were at Rs 114.7 crore including short term borrowings of Rs 41.4 crore.
There are no listed comparable companies in India that engage in a business similar to that of Veranda as per the prospectus.
Allotment and Listing Dates:
The basis of allotment of shares will get finalised by April 5. The funds will be credited to the bank accounts of unsuccessful investors and equity shares will be transferred to demat accounts of eligible investors by April 6.
The trading in equity shares on the BSE and NSE will commence with effect from April 7.
Systematix Corporate Services is the book running lead manager to the issue, while the registrar to the IPO is KFin Technologies.