Veranda Learning Solutions IPO subscribed 74% on Day 1 driven by retail investors

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Chennai-based Veranda Learning Solutions’ initial public offering (IPO) subscribed by 74% of the total issue size on Day 1. The company launched its public offer on March 29 and will allow subscriptions till March 31. The IPO received massive demand from retail investors on the first day with the portion reserved for this category fully subscribing.

The company’s issue size aggregates to 200 crore. It has a price band of 130 to 137 apiece.

On Day 1, NSE data showed that the IPO received cumulative bids of 87,53,400 equity shares against the offered size of 1,17,88,365 equity shares – thereby subscribing by 74% of the total issue.

From the total bids received today, the portion reserved for retail individual investors got oversubscribed by 4.15 times, while the portion kept for non-institutional investors subscribed by 85%. However, lacklustre demand was seen from the qualified institutional buyers as the portion reserved for this category got subscribed by merely 5%.

Under the issue, 75% of the portion is reserved for qualified institutional buyers (QIB), while 15% of the size is kept for non-institutional investors (NII), and the remaining 10% for retail investors. The bidding lot will be 100 equity shares and in multiples thereof.

Systematix Corporate Services is acting as the book running lead manager (BLRM) of the issue.

From the total IPO size, Veranda plans to utilise proceeds of 60 crore for repayment or pre-payment of certain borrowings, while nearly 25.12 crore is planned to be utilised for payment of acquisition consideration of Edureka or repayment of a bridge loan availed specifically for this acquisition. Proceeds of 50 crore are aimed for growth initiatives by the company, meanwhile, a portion will be used for general corporate purposes as well.

Post IPO, Veranda will be listed on BSE and NSE.

Veranda 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 (collectively “Students”) professionals and corporate employees (“Learners”) enrolled with their courses through a multitude of career-defining competitive exams, professional courses, exam-oriented courses, short term upskilling and reskilling courses.

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