Veranda Learning Solutions IPO

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(i) Verdana Learning is engaged in the business of offering diversified and integrated learning solutions in online, offline hybrid and offline blended formats to students, aspirants, and graduates (collectively “Students”) professionals and corporate employees (“Learners”) enrolled with their courses through a multitude of career-defining competitive exams, professional courses, exam-oriented courses, short term up-skilling and re-skilling courses.

(ii) Verdana Learning provides comprehensive long-term and short-term preparatory courses in a simple and lucid manner for Students preparing for UPSC Exams, State Public Service Commission, Staff Selection Commission, Banking, Insurance, Railways, and Chartered Accountancy. They also provide customised short-term skilling courses, long-term courses, and other corporate courses to their Learners. They also deliver these courses to employees of corporates through their B2B offerings.

(iii) Company primarily provides its services through online, offline hybrid, and offline blended learning models. Their offline hybrid learning model involves classroom teaching supported with online assessments and access to self-paced learning material to enhance recall and retention. Their offline blended model involves a mix of Online content and Offline delivery, wherein the center delivers LMS Study Materials together with the traditional classroom experience of personal mentoring from Mentors, with a dedicated Mentor in each classroom available for assistance to Students. Their offline hybrid and offline blended learning models offer traditional classroom experience of personal mentoring from experienced Mentors along with highly curated digital content and online assessments.

(iv) Verdana Learning currently has 431 employees on their payroll and 400 outsourced employees. Their employees include Mentors, Student Advisors, and non-teaching staff including the content team, who administer its business operations, such as coordinating classrooms, databases, and specific-marketing activities. Their employees are not unionised and are not affiliated with any union.

Student enrolment Data

During the nine month period ending December 31, 2021, a total of 42,667 Students and professionals have enrolled across all the courses, being 16,793 in offline models and 25,874 in online model.

During the nine month period ending December 31, 2021, they had overall employed 8 Student advisors, 166 Mentors and  operated 25 PDCs across 25 cities and towns and 2 states.

Competitive Strengths:

  1. Proven track record of the company Promoters.
  2. Result-oriented method of teaching with a 360-degree approach.
  3. Diversified course offerings and delivery channels.
  4. Extensive experience in the education business and professionally qualified human capital.
  5. Strong Brand Presence of our brands.
  6. Track record of successful acquisition and expansion.
  7. Efficient infrastructure and resource management with strict quality control standards and affordable courses.
  8. Technology-driven, Asset Light & Scalable business model.
  9. Pandemic Proof Model.

Objects of the Veranda Learning Solutions IPO:

The net proceeds of the Offer, i.e. gross proceeds of the Offer less the offer expenses apportioned to our Company ("Net Proceeds") are proposed to be utilized in the following manner: 1. Repayment or pre-payment, in part or full of all or certain of their borrowings 2. Payment of acquisition consideration of Edureka or repayment of a bridge loan availed specifically for the purpose of discharge of such acquisition consideration of Edureka 3. Growth initiatives

Veranda Learning Solutions IPO Details:

Open Date: Mar 29 2022
Close Date: Mar 31 2022
Total Shares: 14598540
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 200 Cr.
Lot Size: 100 Shares
Issue Price: ₹ 130 - 137 Per Equity Share
Listing At: NSE,BSE
Listing Date: Apr 08 2022

Promoters And Management:

i. Mr. Kalpathi S. Suresh, is an Executive Director cum Chairman of the Company. He is one of the Promoters of the Company. He holds a Bachelor’s Degree of Technology (B. Tech) in Electrical Engineering (Electronics) from Indian Institute of Technology, Madras (Chennai, Tamil Nadu), and a Master’s Degree of Science in Electrical Engineering from Clemson University. He oversees the day-to-day operations comprising mainly of contributing in high level business development, networking, business guidance, business visibility, administration, finance, policy and decision making, of the Company. ii. Mr. Kalpathi S. Aghoram, is a Non-Executive Director cum Vice-Chairman of the Company. He is one of the Promoters of the Company. He holds a Bachelor’s Degree in Commerce from the University of Madras (Chennai, Tamil Nadu) iii. Mr. Kalpathi S. Ganesh, is a Non-Executive Director of the Company. He is one of the Promoters of the Company. He holds a Bachelor’s Degree of Applied Science from Anna University (Chennai, Tamil Nadu). He has completed a certificate course in Computer Software and Applications from the National Institute of Information Technology (NIBT), and also holds a Master’s Degree in Software Systems Branch from the Birla Institute of Technology & Science (Pilani, Rajasthan). He also holds a membership certificate from the Institution of Engineers (India) (Kolkata, West Bengal) and a diploma of associate membership certificate from the Institute of Engineers (India)

Financials of Veranda Learning Solutions IPO:

Particulars (in Lakhs) Sep-21 Mar-21 Mar-20 Mar-19
Sales 1,546 254 0 0
Cost of Material Consumed 1 1 0 0
Purchases of Stock-In-Trade 69 97 0 0
Changes in Inventories -4 -71 0 0
Employee Benefits Expense 718 321 0 0
Other Expenses 2,288 671 20 10
Operating Profit -1,526 -765 -20 -10
OPM % -98.71% -301.18% - -
Other Income 20 1 0 0
Interest 137 3 0 0
Depreciation 206 63 0 0
Profit before tax -1,848 -829 -20 -10
Total Tax Exps -21 -1 0 0
Net Profit -1,827 -828 -20 -10
NPM % -118.18% -325.98% - -
No. of shares 557.76 557.76 557.76 557.76
EPS in Rs -5.14 -7.29 -489.69 -245.88

Comparison With Peers:

There are no listed companies in India that engage in a business similar to that of this Company.

Recommendation on Veranda Learning Solutions IPO:

Review and Recommendation of  Veranda Learning Solutions IPO by InvestorZone is 4/10 1. Company is just 2 years old, so it is very difficult to analyse it. However, company's management is good and sector in which company is doing business is education, which has become quite hot after pandemic. 2. The growth in the business in the last 2 years have come on the back of inorganic growth. For instance; (i) they acquired the content, brand, education materials and IPR from Chennai Race in order gain a foothold in the market and better our resources. (ii) in September 2021, they acquired 100% stake in Brain4ce Education Solutions Private Limited, also known as ‘Edureka'. (iii) the digital content and related study materials for UPSC and CA courses were developed by SAI IAS and Trans Learning LLP respectively for the Veranda IPO. 2. Company is offering shares at Mcap of ~750 Crores, which looks tad expensive for a 2 years old company generating a revenue of ~15 Crores in FY21. 3. The IPO is very risky. So, the investors who can take risk may apply in this IPO. 4. They are raising funds mainly to payback for the inorganic investment they have done in the last 2 years.

Lead Manager of Veranda Learning Solutions IPO:

  1. Systematix Corporate Services Limited

Registrar of Veranda Learning Solutions IPO:

  1. Kfin Technology Private Limited

Company Address:

Veranda Learning Solutions Limited Old No 54, New No 34, Thirumalai Pillai Road, T. Nagar, Chennai – 600017 Phone: +91 44 42967777 Email: Website

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