One of the big success stories during the pandemic has been the online learning companies. Big names like Byju’s, Simplilearn and Vedantu have all seen their valuations grow manifold as students across the board increasingly opted for online learning. One more company from the online learning fold tapping the IPO market is Veranda Learning Solutions Ltd.
Here are Seven things to know about Veranda Learning Solutions IPO
1. Veranda Learning Solutions Ltd has filed preliminary papers (DRHP) with SEBI for its proposed IPO. The IPO size is small at just around Rs.200 crore and the issue will be entirely by way of a fresh issue of funds.
Thus fresh funds will come into the company and there will also be overall equity dilution.
2. Veranda is also considering a private placement of shares worth Rs.50 crore. This exercise will be taken up after the SEBI approval comes through and before filing the RHP with the Registrar of Companies.
If the pre-IPO placement is successful, then the company will reduce the size of its IPO to that extent.
3. The proceeds of the IPO will be used for repaying its debt and also retiring the acquisition consideration of Edureka. This was an acquisition made by Veranda in the month of September 2021 to supplement its learning offerings online and offer it to a much wider international audience.
4. In September this year, Veranda Learning Solutions acquired 100% in Brain4ce Education Solutions from Edureka. As per the share purchase agreement signed with Edureka, the acquisition will allow Veranda Learning Solutions to expand its learning content offerings on the software education front to the US and also to the UK.
5. Veranda provides its services through four subsidiaries. Veranda Race Learning Solutions is into digital software training. Veranda XL Learning Solutions offers the most comprehensive Chartered Accountancy training for intermediate and final levels.
Veranda IAS Learning Solutions is aimed at aspiring IAS officers while Brain4ce Education Solutions, is the Edureka acquisition for the global markets of US and UK.
6. Veranda has a wide business matrix offering its palate of learning solutions to students, professionals and corporate employees.
The training courses have long-term and short-term preparatory courses to prepare for UPSC Exams, SPSC exams, Staff Selection Commission, Banking, Insurance, Railways and Chartered Accountancy.
7. The issue will be lead managed by Mumbai based Systematix Corporate Services. The size of the IPO is quite small but online learning is one of the fastest growing and robust business models currently in India.
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