Veranda Learning Solutions

Veranda Learning Solutions

Veranda Learning Solutions
listed
₹13,000Min. investment
  1. Bid start
    29 Mar
  2. Bid end
    31 Mar
  3. Allotment
    31 Mar
  4. Release of funds
    6 Apr
  5. Demat transfer
    5 Apr
  6. Listing
    7 Apr

About Veranda Learning Solutions

Price range₹130 – ₹137
IPO type
Regular
Lot size100 shares
Issue size₹200Cr
RHP/DRHP
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Checklist

Risk analysis
Debt to Equity ratio
Promoter holdings
Shares pledged
The investment checklist helps you understand a company's financial health at a glance and identify quality investment opportunities easily
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.
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.

Frequently asked questions

How to invest in the IPO?

Investors can apply for the IPO through their Demat account via the stock exchange or through their broker.

What is the issue size of Veranda Learning Solutions ?

The issue size of the Veranda Learning Solutions is 200 Cr.

What is 'pre-apply' for Veranda Learning Solutions ?

Pre-applying for an IPO allows you to submit your application before the official subscription period begins.

Which exchanges will Veranda Learning Solutions shares list on?

The IPO shares will typically list on major stock exchanges such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), as specified in the IPO prospectus.