Veranda Learning Solutions is going to launch its initial public offering (IPO) next week on March 29, through which the company plans to raise Rs 200 crore. Here are 10 things investors need to know about public issues.
Important Dates
The IPO will open for subscription on March 29. The IPO of Learning Solutions Company will close on March 31, the basis of allotment will be finalized on April 5, refund and credit of shares in the demat account will start on April 6. The listing of the IPO is likely to happen by April 7.
price band
The company has fixed a price band of Rs 130-137 per share. Prior to filing the red herring prospectus, Veranda Learning raised Rs 40 crore by issuing 30.8 lakh equity through a private placement to the public category.
lot size
Investors can bid for a minimum of 100 equity shares and thereafter in multiples of 100 shares. A retail investor can apply for up to 14 lots (1,400 shares or Rs 191,800).
offer size
In the initial public offering of Veranda Learning Solutions, equity shares of face value of Rs 10 will be issued, aggregating to Rs 200 crore.
use of funds
The net proceeds of the offer shall be used by the company for repayment of debt (Rs 60 crore), payment of acquisition idea of Edureka or repayment of bridge loan taken exclusively for the purpose of discharge of such acquisition idea of Edureka (25.2 Rs. crore), and Development Initiatives (Rs. 50 crore).
reserve portion
According to the red herring prospectus, up to 75 per cent of the total offer is reserved for qualified institutional buyers (QIBs), not more than 15 per cent for non-institutional bidders (NIIs), and the remaining 10 per cent for retail investors. , Up to 60 per cent of the QIB share can be allotted to anchor investors, who bid one working day prior to the date of opening of the offer.
company
Veranda, which started its operations in December 2020, conducts preliminary through four wholly owned subsidiaries for various exams for students preparing for UPSC exams, State Public Service Commissions, SSC, Banking, Insurance, Railways and Chartered Accountancy. Offers the courses – Veranda Race Learning Solutions, Veranda XL Learning Solutions, Veranda IAS Learning Solutions, and Brain4ce Education Solutions (Edureka).
The company provides its services through online-offline hybrid and offline blended learning models.
During the nine-month period ending December 31, 2021, a total of 42,667 students and professionals were enrolled in the courses offered by the company, 16,793 in the offline model and 25,874 in the online model.
veranda finance
In the financial year 2020-21 and for the six-month period ended September 30, 2021, the company earned total revenue of Rs 2.5 crore and Rs 15.66 crore, respectively, as per the red herring prospectus.
Its Ebitda (earnings before interest, tax, depreciation and amortization) for April-September 2021 stood at Rs 15.2 crore.
In the financial years 2019, 2020 and 2021, the company’s Ebitda (earnings before interest, tax, depreciation and amortization) is Rs 9.8 lakh, Rs 19.6 lakh and Rs 7.63 crore, respectively; and net loss after tax stood at Rs 9.8 lakh, Rs 19.6 lakh and Rs 8.27 crore, respectively.
online and offline business
Online business: Out of the total, its online business accounted for Rs 2.37 crore and Rs 6.78 crore respectively for the full financial year 2021 and the six-month period ended September 30, 2021.
Offline business: Offline business stood at Rs 4.4 lakh and Rs 6.87 crore for the six-month period ending FY 2021 and September 30, 2021, respectively.
its originator
The promoters of the company are Kalpana S Aghoram, Kalpana S Ganesh and Kalpana S Suresh.
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