Veranda Learning Solutions made a strong debut on Monday as the shares listed at a 14.6 per cent premium to the issue price. The scrip opened at Rs 157 on Bombay Stock Exchange (BSE) against issue price of Rs 137, while it opened 8.7 per cent down at Rs 125 on National Stock Exchange (NSE). The Rs 200 crore public issue was subscribed 3.53 times during the March 29-31 period as retail investors bid for 10.76 times the shares reserved for them, while the portion set aside for non-institutional investors (NII) was subscribed 3.87 times. Qualified institutional buyers (QIB) section was subscribed 2.02 times.
Veranda Learnings recorded a loss of Rs 8.3 crore on revenue of Rs 2.54 crore for the financial year 2020-21, while its loss in the six months ended September 2021 was Rs 18.3 crore on revenue of Rs 15.46 crore. Most brokerage houses had an ‘avoid’ rating on the public issue citing the loss making status, negative operating cash flows and expensive valuations. The price band for the public offer was fixed at Rs 130-137 per share.
Veranda provides long and short term preparatory courses for students for UPSC exams, State Public Service Commission, Staff Selection Commission, banking, insurance, railways and chartered accountancy. The company has proposed to utilise the net proceeds towards funding the repayment or pre-payment, in part or full of all or certain of its borrowings (Rs 60 crore); payment of acquisition consideration of Edureka or repayment of a bridge loan availed specifically for the purpose of discharge of such acquisition consideration of Edureka (Rs 25.2 crore); growth initiatives (Rs 50 crore), and for general corporate purpose.
