IPO Veranda: Veranda Learning Solutions Ltd. IPO hashrate garnered a good response from investors, with the issue being subscribed 3.43 times as of the afternoon of the last day of bidding on March 31. Veranda Learning IPO was open for subscription on March 29, 2022, and will end today. The offer price range is Rs 130-137 per share and the company aims to raise Rs 200 crore through its public offer.
Veranda Learning IPO: Subscription Status
Investors have bid for 4.04 crore equity shares against an offer size of 1.17 crore units. Retail investors were ahead in subscribing 10.26 times of the share earmarked for them. Non-institutional investors have bid at 3.71 times their allotted quota, while qualified institutional buyers subscribed for shares 2.02 times of the total reserve. The learning solutions provider intends to raise Rs 200 crore through a public issue with a price band of Rs 130-137 per share.
The company has reserved up to 75 per cent of the total offer for Qualified Institutional Buyers (QIBs), while non-institutional investors (NIIs) will get 15 per cent allocation. The remaining 10 per cent allocation will go to retail bidders.
Veranda Learning IPO: Allotment & Listing Dates
The tentative date for allotment of shares is expected to be 5th April 2022. Bidders are advised to check the status of their IPO online by logging on to the website of BSE or the official Registrar of IPOs – Kefintech Pvt Ltd. The shares of Veranda Learning will be listed on both NSE and BSE and the expected date of its stock market debut is April 7, 2022.
Veranda Learning IPO: GMP
Veranda Learning Shares are still not available for trade-in in the gray market. Therefore, Veranda Learning IPO GMP (Grey Market Premium) is not available today.
Veranda Learning IPO: What Do Brokerages Say?
“The company is launching the issue at a price-to-book multiple of 8.15x on pre-issue book value basis. Although the company’s business model is technology-driven, asset-light and scalable, with a proven track record of promoters as well as a 360-degree approach and a results-oriented method of teaching with diverse course offerings and delivery channels, the financial Given this, Aastha Jain, Senior Research Analyst, Hem Securities, said, “We recommend avoiding this issue from the company’s and valuation point of view”.
In the financial year ending March 2021, Veranda posted a loss of Rs 8.3 crore on revenue of Rs 2.54 crore, and in the six-month period ending September 2021, the loss was Rs 18.3 crore on an increase in revenue of Rs 15.46 crore.
Arafat Sayed, Research Analyst, Reliance Securities, said that on the FY22 annual financials, the IPO is at 25x market cap/sale for a less-tracked loss-making company, which looks expensive and the market is highly competitive.
“Although Veranda has diverse course offerings and distribution channels, a professionally qualified human capital and a strong brand presence, its business operations with losses raise concerns. Analysts at Reliance Securities said the IPO is priced aggressively and leaves nothing meaningful on the table for investors in the medium term perspective.
The company is offering diverse and integrated learning solutions to students, aspirants and graduates, professionals and corporate employees in online, offline hybrid and offline mixed formats.
“Veranda Learning has a presence in the test preparation market and intends to serve the K-12 segment in the future. After commencing its operations in December 2020, the company is in the growth phase. Presently, the company is making loss. and are projected to remain deficit in the medium term,” Choice India said.
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