Veranda IPO: Veranda Learning Solutions Limited IPO hash as seen good response from investors with the issue being subscribed 3.43 times till the afternoon of the final day of bidding on March 31. Veranda Learning IPO had opened for subscription on March 29, 2022, and will conclude today. The price range for the offer is Rs 130-137 per share and the company aims to raise Rs 200 crore from its public offer.
Veranda Learning IPO: Subscription Status
Investors have put in bids for 4.04 crore equity shares against an offer size of 1.17 crore units. Retail investors remained ahead with subscribing 10.26 times the portion set aside for them. Non-institutional investors have bid 3.71 times their allotted quota, while qualified institutional buyers have subscribed shares 2.02 times the total reserved portion. The learning solutions provider intends to raise Rs 200 crore through the public issue with a price band set at Rs 130-137 per share.
The company has reserved up to 75 per cent of the total offer for qualified institutional buyers (QIBs), whereas non-institutional investors (NIIs) will get 15 per cent allocation. Retail bidders will get the remaining 10 per cent allocation.
Veranda Learning IPO: Allotment and Listing Dates
The tentative date for share allotment is expected on April 5 2022. Bidders are advised to check their IPO status online by logging in at the BSE website or at the website of the official registrar of the IPO — KFintech Private Limited. Shares of Veranda Learning will be listed on both NSE and BSE and the expected date of its stock market debut is April 7, 2022.
Veranda Learning IPO: GMP
Veranda Learning shares are still not available for the trade-in grey market. Hence, Veranda Learning IPO GMP (grey market premium) is not available today.
Veranda Learning IPO: What do Brokerages Say?
“The company is bringing the issue at a price-to-book multiple of 8.15x on a pre-issue book value basis. Although the company’s business model is technology-driven, asset-light, and scalable with a proven track record of promoters along with a result-oriented method of teaching with a 360-degree approach and diversified course offerings and delivery channels but looking at the financials of the company and valuations, we recommend “avoid” on the issue,” said Astha Jain, Senior Research Analyst at Hem Securities.
In the financial year ended March 2021, Veranda posted a loss of Rs 8.3 crore on a revenue of Rs 2.54 crore, and in the six months period ended September 2021, the loss was at Rs 18.3 crore on increased revenue of Rs 15.46 crore.
On FY22 annualized financials, the IPO is at 25x market cap/sales for a loss-making company with a low track which looks expensive and the market is highly competitive, said Arafat Saiyed, Research Analyst, Reliance Securities.
“Though Veranda has a diversified course offerings and delivery channels, a professionally qualified human capital, and a strong brand presence, its business operations with losses raise concerns. The IPO is aggressively priced and hardly leaves anything meaningful on the table for investors in the medium-term perspective,” said analysts at Reliance Securities.
The company is into offering diversified and integrated learning solutions in online, offline hybrid and offline blended formats to students, aspirants and graduates, professionals and corporate employees.
“Veranda Learning has a presence in test preparation market and intends to have services for the K-12 segment in future. Having commenced its operations in Dec. 2020, the company is in growth phase. Currently, the company is loss-making and is forecasted to remain loss-making in the medium term,” said Choice India.
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