Veranda Learning Solutions Raises Significant Funds Through QIP
Veranda Learning Solutions Ltd. has successfully raised Rs 357.4 crore through its first Qualified Institutional Placement (QIP) of shares. The education technology firm allocated 1.58 crore equity shares to eligible institutional investors at an issue price of Rs 225.20 per share, as disclosed in a regulatory filing.
The QIP was open for subscription from July 17 to July 22 and received approval from the company’s QIP committee during a meeting held on Tuesday. The issue price includes a premium of Rs 215.20 per share over the face value of Rs 10. This price also reflects a 4.95% discount to the floor price of Rs 236.92, in accordance with SEBI regulations.
The QIP attracted strong interest from prominent domestic and international institutional investors. Among them are Authum Investment, Trust Mutual Fund, Resonance Opportunities Fund, Necta Bloom VCC, and Saint Capital Fund, along with several other long-only investors.
Authum Investment emerged as the largest single investor, securing 44.77% of the QIP allotment, followed by Necta Bloom VCC with 11.19%. This level of participation highlights the confidence that institutional investors have in Veranda Learning’s future prospects.
Chairman and Executive Director Suresh Kalpathi stated that Rs 310 crore from the QIP proceeds will be used to reduce the company’s debt burden, including repaying the Ascertis Credit facility. This move is expected to significantly improve the company’s debt profile.
The remaining funds will be directed towards strategic growth initiatives across various verticals, aimed at creating long-term value for shareholders. These initiatives may include expanding product offerings, enhancing user experience, or exploring new market opportunities.
Following the successful QIP, Veranda Learning’s paid-up equity share capital has increased from Rs 77.73 crore to Rs 93.60 crore. The total number of outstanding equity shares has risen to 9.36 crore, up from 7.77 crore prior to the issue.
The revised shareholding structure will be submitted along with the company’s listing application under SEBI guidelines. This step is crucial for ensuring transparency and compliance with regulatory requirements.
This capital infusion is anticipated to support Veranda Learning’s growth strategies in the highly competitive edtech sector. However, the company has not yet provided specific details about how the proceeds will be utilized beyond general statements about growth and debt reduction.
Despite the positive developments, the company’s shares closed 0.2% lower at Rs 244.20 per share on the BSE, compared to a flat benchmark Sensex. Over the past 12 months, the stock has declined by 14%, although it has shown a modest 2% increase this year.
Overall, the QIP marks a significant milestone for Veranda Learning, providing the necessary financial resources to strengthen its position in the edtech market and drive future growth.
