Veranda Learning Solutions IPO: Opens today; Key things to know

Chennai-based Veranda Learning Solutions, an offline hybrid edu-tech company, will be launching its initial public offering (IPO) today, i.e. Tuesday, March 29, 2022. The IPO comprises a fresh issue of Rs 200 crore, according to its red herring prospectus. The company has fixed a price band of Rs 130-137 per share.

The retail investors can bid for a lot of 100 equity shares and in multiples of 100 shares thereof. 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). The issue will remain open for bidding till March 31, 2022.

Under the issue, 75 per cent of the portion is reserved for qualified institutional buyers, while 15 per cent of the size is kept for non-institutional buyers and the remaining 10 per cent for retail investors.

Systematix Corporate Services is acting as the book running lead manager (BLRM) of the issue. Post IPO, Veranda will be listed on BSE and NSE.

From the total IPO size, Veranda plans to utilise proceeds of Rs 60 crore for repayment or pre-payment of certain borrowings. Nearly Rs 25.12 crore is planned to be utilised for payment of acquisition consideration of Edureka or repayment of a bridge loan availed specifically for this acquisition. Proceeds of Rs 50 crore is aimed for growth initiatives by the company, meanwhile, a portion will be used for general corporate purposes as well.

Issue Details

♦ Issue open: March 29, 2022.

♦ Issue close: March 31, 2022.

♦ Issue size: Rs 200 crore.

♦ Lot size: 100 equity shares and multiples.

♦ Listing on: BSE and NSE.

♦ Lead managers: Systematix Corporate Services Ltd.

Besides, the learning solutions provider Veranda Learning Solutions has raised Rs 46.75 crore from three anchor investors on March 28, 2022, a day ahead of the public issue launch. The company has offered 34,12,500 equity shares to anchor investors, at an upper price band of Rs 137 per equity share. AG Dynamic Funds acquired Rs 25 crore worth of equity shares, Resonanace Opportunities Fund bought Rs 10 crore worth of shares, and Next Orbit Ventures have been allocated shares worth Rs 11.74 crore by the company, through anchor book.

Veranda Learning Solutions which started its operations in December 2020 is engaged in the business of offering diversified and integrated learning solutions in online, offline hybrid and offline blended formats to students, aspirants, graduates, professionals and corporate employees enrolled with their courses through a multitude of career-defining competitive exams, professional courses, exam-oriented courses, short term upskilling and reskilling courses.