There was a debut on the bourses - Veranda Learnings Solutions got listed on the BSE at Rs.157share a premium of over 14% as compared to its IPO issue price of Rs.137/share.
The company is engaged in online and offline education for software professional upskilling (both B2B and B2C) and test preparation for government exams, CA, IAS.
The IPO was subscribed 3.53 times wherein Retail Individual Investors (RIIs) portion received 10.76 times subscription, non-institutional investors portion got subscribed 3.87 times and Qualified Institutional Buyers (QIBs) 2.02 times.
In our IPO Analysis, we had concluded, “Vernacular test preparation and IT upskilling offer high growth potential, but profitability remains a big question mark. Besides steep valuation, education sector has not rewarded shareholders in the listed space, with ample examples of wealth destruction from the past - Educomp, Everonn, Tree House, CL Educate, MT Educare etc. Operating losses combined with high valuation makes this offer extremely risky.”