Veranda Learning Solutions IPO : Company Information and More

Veranda Learning Solutions initiated its business operations in 2018. It offers coaching for major exams which are career defining such as UPSC, Banking, Chartered Accountant etc. All its coaching is offered under Veranda Race Learning Solutions Private Limited, Veranda IAS Learning Solutions Private Limited, Veranda XL Learning Solutions PRivate Limited and Brain4ce Education Private Limited. The total students enrolled in today’s date are 42650. Out of them 25800 have applied for an online model and the rest have applied for an offline model of learning.

IPO DETAILS

Veranda Learning Solutions IPO is set to launch on 29th March, 2022. The subscription timeline extends till 31st March, 2022. The size for the IPO is 200 Crore Rs.. No Shares are issued through Offer for Sale. Shares issued through Fresh Issue are worth Rs. 60 Crore. The lot size is 100 shares and the price range is 130 Rs. – 137 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 10 and this is a book built issue. The registrar for the company is Karvy Fintech India Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	29th March, 2022
CLOSING DATE FOR IPO	31st March, 2022
ISSUE TYPE	Book Built Issue
Face Value per share	10 Rs. per share
IPO price band	130 Rs. – 137 Rs.
LOT SIZE	100 shares
MINIMUM ORDER QUANTITY	100 shares
ISSUE SIZE	200 Crore Rs.
OFFER FOR SALE	No shares for OFS
FRESH ISSUE	200 Crore Rs.
LISTING AT	NSE, BSE
LISTING DATE	7th April, 2022

IMPORTANT DATES

IPO OPENING DATE	29th March, 2022
CLOSING DATE FOR IPO	31st March, 2022
IPO ALLOTMENT DATE	5th April, 2022
REFUNDS	6th April, 2022
DEMAT A/C CREDITED ON	6th April, 2022
IPO LISTING DATE	7th April, 2022

Veranda Learning Solutions IPO begins for subscription from 29th March, 2022. The IPO subscription would continue till 31st March, 2022. The allotment status for the shareholders who applied would come on 5th April, 2022. The refunds for the ones who did not get allotment would be initiated on 6th April, 2022. The DEMAT accounts of shareholders would be credited on 6th April 2022. The listing of the company would be accompanied on 7th April, 2022.

Lead Managers And Promoters

The promoters of the company are Mr. Kalpathi S. Aghoram, Mr. Kalpathi S. Suresh and Mr. Kalpathi S. Ganesh.

The lead managers are :

• Corporate Capital Ventures Private Limited

The minimum lot size for the company is decided at 100 shares. This holding accounts to  13700 Rs.. The maximum lot size is decided at 14000 shares. This amounts to 191800 Rs.. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	100 shares	13700 Rs
Maximum	1400 shares	191800 Rs.

OBJECTIVES FOR THE IPO

• The funds can be utilised for General corporate purposes.
• The company has borrowings in the name of business loans and business takeover of Edureka which needs to be paid off. Hence the money will be used for those purposes.
• The company also plans to utilise the money for further business growth purposes.

COMPANY FINANCIALS

Particulars (in Million Rs.)	Sept. 2021	2020-21
ASSETS	3073	115
REVENUE	156.61	25.45
NET PROFIT	(182.69)	(82.79)

The company’s financials are not at all impressive. The major reason behind the same is its initiation of business date. The company has just initiated its business operations. However it also seems that it is showing a lot of haste in getting an IPO listed or itself. The company has not even bagged its first profitable quarter. Post the launch it faced COVID crisis. However, its student count is satisfying. 

On the other hand its assets and revenue don’t match up. Also given its high expenses it is unable to book a positive quarter or Financial; year. Hence one should have a definite goal for investing into the company. It can be done for the purpose of diversification. However the most highlighted red flag is its new business venture and early application of IPO.

PROS

• Diversity in product offering. It offers coaching to various courses such as CA, Railways, Banking, Insurance exams etc.
• Its business model qualifies as a pandemic proof model.

CONS

• Highly competitive segment.

Veranda Learning Solutions IPO APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

1. Logging into Zerodha console through its website or KITE platform.
2. Clicking the IPO link present in the Portfolio section.
3. Click the Veranda Learning Solutions IPO button and press the BID button.
4. Entering the details asked for like UPI ID, Quantity and price.
5. Submit the application form for the IPO.
6. Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.