Veranda IPO: Shares of Veranda Learning Solutions are expected to be listed with 5-10 per cent on D-Street, which is higher than the issue price of Rs 137 per equity share, buoyed by decent initial public offering (IPO) subscription and positive market sentiment. The situation is there though it is a loss making unit. , say experts. As per information available on the BSE website, “The equity shares of Veranda Learning Solutions Limited will be listed and admitted for transactions in the ‘T’ Group of Securities List on the Exchange.” The shares of Veranda Learning Solutions Limited will be listed on NSE and BSE in the Special Pre-Open Session (SPOS) on Monday, April 11, 2022.
Veranda IPO: Membership Status
The online and offline learning solutions provider launched its IPO during March 29-31 which was subscribed 3.53x with support from all types of investors. Retail investors were at the forefront of support, bidding 10.76 times the allotted quota, while non-institutional investors subscribed to shares at 3.87 times the reserve share and qualified institutional investors bought 2.02 times the share earmarked for them.
Veranda IPO: Ahead of GMP Listing
According to data available on IPO Watch and IPO Wala, Veranda is bidding at a 10 per cent premium to Rs 152 per share in the gray market, while the IPO price is Rs 137 per share. As Veranda IPO GMP is Rs 15, it means gray market is expecting to list this public issue at around Rs 152 (Rs 137 + Rs 15), which is around 10 from the price band of Rs 130 to Rs 137. percentage is higher. However, secondary market experts said GMP is not an ideal indicator about potential listing profit as it has nothing to do with the company’s balance sheet.
What Experts Say About Veranda Learning IPO Listing?
According to stock market analysts, Veranda Learning share price may have a ‘flat’ opening today. He said the company was a loss-making venture and was also projected at a higher valuation. Hence, the prospects for new investors to buy stake in the company from the open market post listing are slim. Market experts said the stock could get listed in the Rs 150-Rs 160 range, giving the allottees 10-15 per cent premium over the issue price of Rs 137 per equity share. However, a lot will depend on the mood of the market.
The company successfully raised Rs 200 crore through this proposal which will be used for debt servicing, payment of consideration for the acquisition of Edureka and development initiatives.
Prashant Taapsee, Vice President (Research), Mehta Equities said, “Given its initial public offering in online/offline learning solutions and strong subscription demand from niche players, we expect a 5-10 per cent listing show on a best case scenario .
All brokerage houses had given an Avoid rating to this IPO as the company is a loss making company with negative operating cash flow.
Veranda reported a loss of Rs 8.3 crore on revenue of Rs 2.54 crore in the financial year ended March 2021, while the loss in the six-month period ended September 2021 was Rs 18.3 crore on a revenue of Rs 15.46 crore.
Incorporated in 2018, Veranda Learning Solutions provides online and offline coaching services to students, graduates, professionals and corporate employees for career-defining courses like UPSE, Chartered Accountant, Banking and Government exams. They have been able to register a lot of students and have been able to increase their revenue to a great extent, though the company has increased losses in the process. There is no listed company in India which is engaged in business similar to Veranda.
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