Veranda Learning Raises Rs 357 Crore Through QIP To Pare Debt — Check Investors

Veranda Learning Solutions Ltd. on Tuesday raised Rs 357.4 crore through a maiden Qualified Institutional Placement of shares. The education technology firm allotted 1.58 crore equity shares to eligible institutional investors at an issue price of Rs 225.20 per share, according to a regulatory filing.

The QIP issue, which opened on July 17 and closed on July 22, was approved by the company’s QIP committee in a meeting held on Tuesday. The issue price includes a premium of Rs 215.20 per share over the face value of Rs 10, and reflects a 4.95% discount to the floor price of Rs 236.92, as per SEBI regulations.

"The QIP witnessed strong participation from notable domestic and global institutional investors including Authum Investment, Trust Mutual Fund, Resonance Opportunities Fund, Necta Bloom VCC, Saint Capital Fund, among many other long only investors," the company said in a statement.

Authum Investment secured 44.77% of the QIP allotment, followed by 11.19% for Necta Bloom VCC.

Chairman and Executive Director Suresh Kalpathi said Rs 310 crore from the QIP proceeds will be used to deleverage the balance sheet, including repayment of the Ascertis Credit facility, significantly improving our debt profile.

"The remainder will be invested in strategic growth initiatives across our verticals, aimed at unlocking long-term shareholder value," he said.

Following the allotment, 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 now stands at 9.36 crore, up from 7.77 crore before the issue.

The company stated that the revised shareholding pattern will be submitted along with its listing application under SEBI rules.

This capital infusion is expected to bolster Veranda Learning’s growth initiatives in the competitive edtech space, though the company has not disclosed specific plans for the use of proceeds.

Shares of Veranda Learning settled 0.2% lower at Rs 244.20 apiece on the BSE, compared to a flat benchmark Sensex. The stock has fallen 14% in the last 12 months and risen 2% so far this year.