Veranda Learning Solutions IPO subscribed 74% on the first day

Hybrid educational technology firm Veranda Learning Solutions initial public offering (IPO) was subscribed 74 per cent (0.74 times) on the first day. The share sale attracted bids for 87,53,400 equity shares against the issue size of 1,17,88,365 equity shares.

Qualified Institutional Buyers (QIBs) portion was subscribed only 5 per cent (0.05 times), which comprised 75 per cent of the net sale. The Non-Institutional Investors portion which comprises 15 per cent of the total issue was subscribed to 85 per cent (0.85 times) and the Retail Individual Investors (RIIs) portion which is 10 per cent of the issue was subscribed 4.15 times.

The Chennai-based digital learning platform has fixed the price band at Rs 130-137 per share. The IPO of Veranda Learning Solutions will remain open till March 31. The offer consists of a fresh issue of Rs 200 crore.

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.

Systematix Corporate Services is acting as the book running lead manager of the issue, while KFin Technologies Private Ltd (formerly Karvy Fintech Private Ltd) is the registrar of the offer. 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.