Veranda Learning Solutions IPO in progress: Issue size, price band, lot size & other details

The initial public offer of Veranda Learning Solutions (IPO) opened on Tuesday. The education services player plans to raise Rs 200 crore via the share sale, which is entirely a fresh issue. The company offers online and offline coaching services for courses such as UPSC, CA, banking, and government exams to students, graduates, professionals, and corporate employees.

Shares are available in a price band of Rs 130 to Rs 137 per equity share. Systematix Corporate Services Limited is the book running lead manager to the issue.

The allotment of shares will be done on April 5, 2022. Lot size of the IPO is 100 shares for which one will have to spend Rs 13,700.

A retail individual investor can apply for up to 14 lots or 1,400 shares by spending Rs 1,91,800. The stock is likely to be listed on BSE and NSE on April 7.

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Proceeds of the public issue will be utilised towards repayment or pre-payment, of loan, the retirement of acquisition consideration of Edureka, and growth initiatives.

Marwadi Financial Services has assigned an avoid call to the IPO.

"Considering the FY21/FY22 (annualized) revenue of Rs 25.40 mn/ Rs 164.63 mn on a post issue basis, the company is going to list at a market cap/sales of 300.84x/24.71x, respectively with a market cap of Rs 7,641 mn. There are no listed companies in India that engage in a business similar to that of the company. We assign "Avoid" rating to this IPO as the company is a loss making company with negative operating cash flows and is available at expensive valuation on an absolute basis," the brokerage said.

Veranda is a comprehensive 360-degree online education platform. It is engaged in the business of offering diversified and integrated learning solutions in online, offline hybrid, and offline blended formats to students, aspirants, and graduates professionals and corporate employees.

In September, Veranda said it has acquired Edureka, a live-instructor-led online solutions provider for the IT industry, for Rs 245 crore. Earlier, Veranda had acquired Chennai Race Coaching Institute, a coaching institute for Banking, SSC, and PSC exams.