Veranda Learning Solutions has decided to launch its maiden public offer for subscription on March 29. This would be the second initial public offering (IPO) getting launched in the current month.
The price band for the offer has been fixed at Rs 130-137 per equity share.
The learning solutions provider is planning to raise Rs 200 crore through the public issue that will close on March 31.
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The net proceeds of the offer will be utilised by the company for repaying Rs 60-crore debt, payment of acquisition consideration of Edureka or repayment of a bridge loan availed specifically for the purpose of discharge of such acquisition consideration of Edureka (Rs 25.2 crore), and growth initiatives (Rs 50 crore).
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.
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Before filing the red herring prospectus, the company has raised Rs 40 crore by issuing 30.76 lakh equity through a private placement to the public category, but the size of the offer has not been reduced pursuant to the private placement.
Veranda offers diversified and integrated learning solutions in online, offline hybrid and offline blended formats to students, professionals and corporate employees, through four subsidiaries — Veranda Race Learning Solutions, Veranda XL Learning Solutions, Veranda IAS Learning Solutions, and Brain4ce Education Solutions (Edureka).
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It provides comprehensive long term and short term preparatory courses for students preparing for UPSC Exams, State Public Service Commission, Staff Selection Commission, Banking, Insurance, Railways and Chartered Accountancy.
For the six-month period ended September 2021, Veranda recorded a loss of Rs 18.27 crore on revenue of Rs 15.46 crore and in the year FY21, the loss was at Rs 8.28 crore on revenue of Rs 2.54 crore.
Systematix Corporate Services is the book running lead manager to the issue.
