Veranda Learning To Raise Up To Rs 250 Crore Through Preferential Issue

Veranda Learning Solutions Ltd.'s board of directors has approved a proposal to raise funds of up to Rs 250 crore through a preferential issue, according to a press release on Wednesday.

The funds will be used for acquisitions, repayment of existing NCDs, deferred consideration payouts and expanding the company's existing business operations. The preferential raise is part of their broader fund-raising plan, which is to be completed in this financial year, the education firm said.

"We’re on track to close all acquisitions in this financial year, and no further equity dilution in Veranda Learning is expected beyond this financial year," Kalpathi Suresh, chairperson of Veranda Learning, said.

Veranda Learning also announced that it plans to acquire a 51% stake in BB Publications Pvt. for Rs.126.2 crore and a 65% stake in Navkar Digital Institute Pvt. for Rs. 45.5 crore. These acquisitions will strengthen Veranda's chartered accountant/cost and management accountant coaching offerings, according to the filing.

Veranda Learning Solutions is focused on unlocking value through its strategic four-pillar approach, encompassing academics, commerce, government test preparation, and study abroad. It is also planning to undertake a corporate restructuring exercise to merge the existing companies in alignment with these segments to improve operational efficiency and strategic focus with an aim to scale and monetise each segment effectively.

The company also appointed three new board members — Jitendra Kantilal Shah, an educator; Ashok Misra, a former director of IIT Bombay; and N Alamelu. The board also gave a nod for the elevation of Aditya Malik to the position of group chief operating officer.

Shares of Veranda Learning closed 6.57% higher at Rs 271.21 apiece on the National Stock Exchange, compared to a 0.13% advance in the benchmark Nifty.