Porch IPO: Veranda Learning Solutions Limited IPO hash given good investor response as the issue was subscribed 3.43 times until the afternoon of the last bidding day on March 31. Veranda Learning IPO was open for enrollment on March 29, 2022 and will close today. The price range for the offer is Rs 130-137 per share and the company aims to raise Rs 200 crore from the tender offer.
Veranda Learning IPO: Subscription Status
Investors have bid for 4.04 crore shares against a bid of 1.17 crore units. Private investors continued to lead the way with a subscription of 10.26 times the share reserved for them. Non-institutional investors bid 3.71 times their allotted quota, while qualified institutional buyers subscribed for shares 2.02 times the total reserved portion. The learning solutions provider plans to raise Rs 200 crore through the public issuance with a price band set at Rs 130-137 per share.
The company has reserved up to 75 percent of its total offerings for qualified institutional buyers (QIBs), while non-institutional investors (NIIs) are allocated 15 percent. Retail bidders will be allocated the remaining 10 percent.
Veranda Learning IPO: Assignment and Listing Dates
The tentative share allotment date is expected to be April 5, 2022. Bidders are advised to check their IPO status online by logging into the BSE website or the website of the official registrar of the IPO — KFintech Private Limited . Shares of Veranda Learning will be listed on both NSE and BSE and the expected date of its stock market debut is April 7, 2022.
Porch Leather IPO: GMP
Veranda Learning shares are still not available for the gray trade-in market. Hence, Veranda Learning IPO GMP (Gray Market Premium) is not available today.
Veranda Learning IPO: what do brokers say?
“The company is pricing the issue at a price-to-book multiple of 8.15x based on its pre-issuance book value. While the company’s business model is technology-driven, asset-light and scalable with a proven track record of promoters, along with a results-oriented teaching method with a 360-degree approach and diversified course offerings and delivery channels, but looking at the company’s financials and valuations, we recommend ‘avoiding’ this issue,” said Astha Jain, Senior Research Analyst at Hem Securities.
In the fiscal year ended March 2021, Veranda recorded a loss of Rs 8.3 crore on a turnover of Rs 2.54 crore, and in the six-month period ended September 2021, the loss was Rs 18.3 crore on a higher turnover of Rs 15.46 crore.
According to Arafat Saiyed, Research Analyst, Reliance Securities, the FY22 annualized IPO is 25x market cap/turnover for a loss-making low-track company that looks expensive and the market is highly competitive.
“While Veranda has a diversified course offering and delivery channels, professionally qualified human capital and a strong brand presence, the loss-making business is a cause for concern. The IPO is priced aggressively and leaves hardly anything meaningful on the table for investors in the medium term,” analysts at Reliance Securities said.
The company provides diversified and integrated learning solutions in online, offline hybrid and offline blended formats to students, aspiring and graduates, professionals and corporate employees.
“Veranda Learning has a presence in the test prep market and plans to provide services for the K-12 segment in the future. After the start of its activities in December 2020, the company is in the growth phase. The company is currently loss-making and is expected to remain loss-making in the medium term,” said Choice India.
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