Exposure offered by Veranda Learning Solutions to fast-growing education sector in India
- ByStartupStory | March 28, 2022
The price band of its initial public offering (IPO) at Rs 130 to Rs 137 per equity share of face value of Rs 10 has been fixed by Veranda Learning Solutions. Through the IPO, the Chennai-based company plans to raise Rs 200 crore which will open on March 29 and close on March 31. The anchor investor bidding will be on March 28.
From the net proceeds of the offer, the company intends to repay debts to the tune of Rs 60 crore. For the payment of acquisition consideration of Edureka the funds will also be utilised and for the purpose of acquisition consideration of Edureka and growth initiatives to the tune of Rs 50 crore, repayment of a Rs 25.2 crore bridge loan availed specifically.
Kalpathi S Suresh, ED-cum-chairman, Veranda Learning Solutions said the company would be offering competitive exam courses in more vernacular languages and to take the software training vertical (Edureka) to more geographies, as part of its expansion plans. Right now, competitive exam courses are available in English, Kannada, Hindi, Tamil, Telugu, and Malayalam.
In the IPO, for qualified institutional buyers, 15% for non-institutional bidders, and the remaining 10% for retail investors, the company has reserved up to 75% of the total offer.
He said that this is the year of investments. With an eye on the future all these investments were done. From the next fiscal, one will see the benefits of it. From there, one will see us as an aggressively growing company with a clear eye on profitability, in the next 3-5 years.
The company had raised Rs 40 crore by issuing 30.76 lakh equity through a private placement to the public category, prior to filing the red herring prospectus.
Suresh said that Veranda had made investments in expanding its content portfolio across multiple vernaculars, invested in building or tweaking its technology platforms to go offline hybrid in software vertical, expanded its footprint across 25 locations in Tamil Nadu and Karnataka..
Diversified and integrated learning solutions in online, offline hybrid and offline blended formats to students, professionals and corporate employees, has also been offered by Veranda through four subsidiaries Veranda Race Learning Solutions, Veranda IAS Learning Solutions, Veranda XL Learning Solutions, and Brain4ce Education Solutions (Edureka).
Follow Startup Story
Related Posts
