Veranda Learning Solutions is going to open its maiden public offer for subscription soon. This would be the fifth IPO to be launched in the calendar year 2022, after AGS Transact Technologies, Adani Wilmar, Vedant Fashions, and Uma Exports.
Here are 10 key things to know before subscribing to the public issue:
1) IPO Dates
The bidding for the offer will open on March 29 and the last day would be March 31. Anchor book will open for a day on March 28.
2) Price Band
The company has fixed a price band at Rs 130-137 per equity share for the offer.
3) Offer Size
The public issue comprises equity shares worth Rs 200 crore by the company. It means the company will issue 1.53 crore equity shares at the lower price band and 1.45 crore shares at the higher price band.
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4) Objectives of Issue
The net proceeds from the offer will be utilised for repaying debts (Rs 60 crore), payment of acquisition cost or loans related to Edureka (Rs 25.19 crore), and growth initiatives (Rs 50 crore).
5) Investors' Reserved Portion and Lot Size
Up to 75 percent of the total offer is reserved for qualified institutional buyers, 15 percent for non-institutional bidders, and the remaining 10 percent for retail investors.
Bids by investors can be made for a minimum of 100 equity shares and in multiples of 100 shares thereafter. With this, retail investors can make a minimum application for shares worth Rs 13,700 and their maximum application cost would be Rs 1,91,800 (for 14 lots).
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6) Company Profile
Chennai-based Veranda Learning Solutions started its operations in December 2020, offering diversified and integrated learning solutions to students, professionals and corporate employees who appeared for career-defining competitive exams, professional courses, exam-oriented courses, short term upskilling and reskilling courses.
It primarily provides these services through online, offline hybrid and offline blended learning models. These services are offered by the company through its four wholly owned subsidiaries Veranda Race Learning Solutions (Veranda Race), Veranda XL Learning Solutions (Veranda CA), Veranda IAS Learning Solutions (Veranda IAS), and Brain4ce Education Solutions (Edureka).
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Promoters -- Kalpathi S Aghoram, Kalpathi S Ganesh and Kalpathi S Suresh -- with a collective experience of over 40 years in the education sector, started their entrepreneurial journey in 1991 with the establishment of SSI, a listed entity which in April 2003 had hived off its education division and merged it with Aptech Limited. In July 2004, the IT services division was demerged and merged with Scandent Solutions Corporation. Now promoters do not hold any interest or rights in SSI.
Promoters have 89.22 percent shareholding in the education services provider and the rest is held by the public.
Veranda does not have a long history as it started off operations in December 2020. In the financial year ended March 2021, it recorded a loss of Rs 8.3 crore on revenue of Rs 2.54 crore and in the six months period ended September 2021, the loss stood to Rs 18.3 crore on increased revenue of Rs 15.46 crore.
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The non-current liabilities, which are generally due after a year or more, stood at Rs 169.91 crore including borrowings of Rs 123.78 crore, while current liabilities, which are payable within a year, were at Rs 114.7 crore including short term borrowings of Rs 41.4 crore.
9) Comparable Peers
There are no listed comparable companies in India that engage in a business similar to that of Veranda as per the prospectus.
10) Allotment and Listing Dates
The basis of allotment of shares will get finalised by April 5. The funds will be credited to the bank accounts of unsuccessful investors and equity shares will be transferred to demat accounts of eligible investors by April 6.
The trading in equity shares on the BSE and NSE will commence with effect from April 7.
Systematix Corporate Services is the book running lead manager to the issue, while the registrar to the IPO is KFin Technologies.
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