The pandemic-triggered lockdowns forced educational institutions to move online in 2020. Also, amid the turmoil in the job markets, there was an urgency among professionals to upskill themselves. These two developments fuelled the growth of India’s young edtech industry. Investors poured money into this space, driving up the valuations of edtech companies to enviable levels.
Pouncing on this opportunity, Chennai-based Kalpathi Group launched the edtech platform Veranda Learning Solutions in December 2020. The group has been in the education sector since 1991 and had started by offering short-term computer software courses to students.
Now, the learning solutions company is all set to hit the bourse. Through the IPO route, Veranda Learning Solution plans to raise money for repaying its debt, funding its latest acquisition and other growth initiatives.
Offer details
- Start date: 29 March 2022
- End date: 31 March 2022
- Price band: ₹130-₹137 per share
- Minimum investment: ₹13,700
- IPO size: ₹200 crore
Timeline
- Allotment: 5 April 2022
- Refund: 6 April 2022
- Credit of equity shares: 6 April 2022
- Listing: 7 April 2022
All about the IPO
The company provides learning solutions primarily through online (recorded videos and online live instructor), offline hybrid (classroom teaching supported with online assessments) and offline blended (a mix of online content and offline delivery) learning models. Its customer-base includes students, aspirants, graduates as well as professionals and corporate employees.
The company offers a variety of preparatory courses to students who are preparing for the UPSC Exams, State Public Service Commission, Staff Selection Commission, banking, insurance, railways exams and Chartered Accountancy. In the first nine months of FY22, a total of 42,667 students and professionals enrolled for its courses, with a majority of them opting for the online model.
As of December 31 2021, the company has 431 employees on its payroll and 400 outsourced employees.
Financials
Strengths
- Its acquisition, Edureka, has over 30 lakh subscribers on its YouTube channel
- Has a large repository of digital content, study materials and test series
- Has around 10,000 sq. ft of production facilities in Chennai
- Has recorded video content of more than 4,000 hours
Risks
- Failure to retain or attract new students. The retention rate was 21% in FY21
- The attrition rate of its mentors (tutors) was 37% in FY21
- Operates in a cyclical sector. The business is linked to the academic cycle
- No operating history prior to December 2020
Good to know
India’s educational technology market is expected to grow rapidly at a CAGR of 39% to $10.4 billion by 2025. Being a young edtech platform, Veranda Learning Solutions could benefit from the surge in demand for online learning.
How can you pre-apply for Veranda Learning Solutions’ IPO?
Pre-applying for Veranda Learning Solutions’ IPO means applying for this public issue before it goes live. Click here and follow these steps to pre-apply for Veranda Learning Solutions IPO on Upstox.
When does pre-apply for Veranda Learning Solutions’ IPO open and how can you pay for it?
You can pre-apply for Veranda Learning Solutions’ IPO from 28 March 2022. Once the IPO goes live, you will receive a UPI mandate. Accept this to block the IPO application amount and successfully place your bid.
How can you apply for Veranda Learning Solutions’ IPO?
Click here to apply for Veranda Learning Solutions’ IPO on Upstox. You can also download our app. Then click here and follow these steps.
When does Veranda Learning Solutions’ IPO open and close for the subscription?
Veranda Learning Solutions’ IPO is open for subscription between 29 March 2022 and 31 March 2022.
What’s the lot size and minimum investment needed for Veranda Learning Solutions’ IPO?
The lot size for Veranda Learning Solutions’ IPO is 100 shares and the minimum investment required is ₹13,700.
What is the price band for Veranda Learning Solutions’ IPO?
The price band for Veranda Learning Solutions’ IPO is ₹130-₹137 per share.
What’s the size of Veranda Learning Solutions’ IPO?
The size of Veranda Learning Solutions’ IPO is ₹200 crore.
How many bids can I place for Veranda Learning Solutions’ IPO?
You can place up to three bids for an application.
Can these bids be placed at different times during the IPO subscription period?
No, the bids have to be placed at one go. If you want to add an additional bid, then you would have to delete your application and re-apply.
When will Veranda Learning Solutions shares be credited to your demat account?
If the shares are allotted, then they will be credited to your demat account on 6 April, 2022. Click here and follow the steps to check the allotment status.
Which exchanges will Veranda Learning Solutions list on?
Shares of Veranda Learning Solutions will list on BSE and NSE.
When will Veranda Learning Solutions list on the exchanges?
Shares of Veranda Learning Solutions will list on 7 April, 2022.
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