New Delhi: Diversified and integrated learning solutions provider, Veranda Learning Solutions made a strong debut in the stock markets on Monday as its stock got listed at a 14.60 per cent premium over the issue price after a good subscription to its initial public offering (IPO).
According to news reports, the stock opened at Rs 157 on the BSE against the issue price of Rs 137, while it opened at Rs 125, down 8.7 per cent on the National Stock Exchange.
The Veranda IPO worth Rs 200 crore was subscribed 3.53 times on the last day of the offer. Bids were received for 4.15 crore shares as against 1.17 crore shares, according to stock exchanges data.
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The category was subscribed 10.76 times for BSE Retail Individual Investors (RIIs), while the share of non-institutional investors was subscribed 3.87 times and Qualified Institutional Buyers (QIBs) 2.02 times.
All brokerages had given ‘avoid’ ratings on the public issue, citing loss-making positions, negative operating cash flows and high valuations. The price band of the offer was Rs 130-137 per share.
According to the exchange filing, the company is going to use the net issue proceeds for debt servicing, payment of consideration for the acquisition of Edureka and development initiatives.
Veranda, which is a comprehensive 360-degree online education platform, offers both long and short duration preparatory courses for UPSC Exams, State Public Service Commission, Staff Selection Commission, Banking, Insurance, Railway and Chartered Accountancy aspirants. It also provides diverse and integrated learning solutions in online, offline hybrid and offline mixed formats.
In the financial year ended March 2021, the company reported a loss of Rs 8.3 crore on revenue of Rs 2.54 crore, while the loss in the six-month period ended September 2021 was Rs 18.3 crore on revenue of Rs 15.46 crore.