Veranda Learning Solutions Ltd. IPO

Veranda Learning Solutions Ltd.

IPO Listing Details

Listed On

BSE & NSE

Listed On

Issue Price

₹137

Issue Price

Listing Price

₹157

Listing Price

Listing Gains

+₹20.00 (+14.60%)

Listing Gains

IPO Details

Bidding Dates

24 Mar - 31 Mar '22

Bidding Dates

Min. Investment

₹13,000

Min. Investment

Lot Size

100.00

Lot Size

Price Range

₹130 - ₹137

Price Range

Issue Size

190 Cr

Issue Size

IPO Doc

(D)RHP PDF  

(D)RHP PDF

Subscription Rate - Veranda Learning Solutions Ltd. IPO

  • Retail Individual Investor
    10.76x
  • Non-Institutional Investor
    3.87x
  • Qualified Institutional Buyers
    2.02x
  • Employees
    NA


About Veranda Learning Solutions Ltd. IPO

Veranda Learning Solutions, founded in November 2018 (business operations commenced in December 2020), is an integrated learning platform providing online as well as offline education solutions. Courses are provided for students, graduates, working professionals as well as corporate employees. In addition to this, short term preparatory courses are also provided across exam categories such as Chartered Accountancy, UPSC, Bank exam coaching and State Public Service Commission. This is a fresh issue of INR 200 Crs, with the proceeds mainly being used for repayment / prepayment of loans, growth initiatives, and payment of acquisition consideration as well as repayment of a bridge loan availed specifically for the purpose of said acquisition (Edureka acquisition in September 2021)

Why should you invest in Veranda Learning Solutions Ltd. IPO?

  • Diversified course offerings and channels with multiple target markets across different age groups
  • Wide range of fee structures from as low as INR 4,992 to INR 275,500 providing a course for a wide range of budgets
  • Collective experience of 40 years of promoters in the education space, along with experience in other sectors such as finance, IT and entertainment
  • Revenue has grown from INR 2.55 Crs as of March 2021, to INR 15.66 Crs as of Sep 2021, indicating a 5.14x growth in a 6-month period (1000% + annualized growth)


SWOT Analysis - Veranda Learning Solutions Ltd. IPO

Strengths:

  • Promoters have experience in the education space which aids in better decision making
  • Asset light model which allows for scaling up pan India at a lower cost as compared to more established offline players
  • Edureka has approx. 3 million subscribers on YouTube and has a niche reach of in-demand instructor led courses in the Information Technology space

 

Weaknesses:

  • Loss making entity with negative Earnings Per Share (EPS) and negative operating cash flows asking for a Price to Sales ratio of almost 25x which seems expensive
  • Acquisition focused model which relies heavily on purchase of similar companies to boost sales numbers – inability to do so may heavily affect the operating effectiveness of the overall business
  • Part of the proceeds being used to fund an acquisition from the past (Edureka acquisition)
  • Very competitive space with no listed peers to compare the valuation metrics with
  • High geographic concentration with most of its business being driven from Tamil Nadu and Karnataka
  • Company has entered into related party transactions (RPT) in the past and may continue to do so in the future
    Intellectual property developed by the company has not been registered under the copyright or patent laws in India

Opportunities

  • E-learning is one of the fastest growing markets in the world and is expected to grow at a CAGR of 21% till 2027
  • BYJUs IPO planned for 2022 will be a watershed moment for the industry in terms of growth and valuation

 

Threats

  • Poor recent performance of similar ‘new age’ tech companies such as PayTM, Zomato and PolicyBazaar may affect perception towards the IPO
  • Outstanding legal proceedings involving promoters, directors and group companies may adversely affect operations
  • Any changes with their relationships with their Preferred Delivery Partners (PDPs) may directly affect business operations



How to apply for Veranda Learning Solutions Ltd. IPO?

You can apply for the Veranda Learning Solutions Ltd. IPO in these ways:

UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.

Demat Account

1. If you are an Existing TradeSmart demat account holder and wish to apply for an Veranda Learning Solutions Ltd. click here.
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