Veranda Learning
Mainboard₹200 Cr issue
+14.60%
Listing gain over issue price
Issue size
₹200 Cr
1 lot at cut-off
₹13,700
Lot size
100shares
Open
29 Mar 2022
Close
31 Mar 2022
Allotment
05 Apr 2022
Listing
11 Apr 2022
Listing performance
Issue price
₹137
Listed at
₹157
Listing-day close
₹160.40
Latest price
₹32.33
Close on 23 Oct 2026
Listing gain
+14.60%
Return since issue
-76.40%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Mar 2022 – 31 Mar 2022
- Listing date
- 11 Apr 2022
- Face value
- ₹10 per share
- Issue price
- ₹137 per share
- Lot size
- 100 shares
- Total issue size
- ₹200 Cr
- Market cap at offer price
- ₹764 Cr
- Promoter holding
- 89.22% → 65.87% pre-issue → post-issue
- ISIN
- INE0IQ001011
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Systematix Corporate Services Ltd.
- Registered office
- Old No 54, New No 34, Thirumalai Pillai Road, T.Nagar, Tamil Nadu
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 34,12,500 | — | — |
Application size
Minimum 100 shares per lot, in multiples, at ₹137
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 100 | ₹13,700 |
| Retail (max) | 14 | 1,400 | ₹1,91,800 |
| S-HNI (min) | 15 | 1,500 | ₹2,05,500 |
| S-HNI (max) | 72 | 7,200 | ₹9,86,400 |
| B-HNI (min) | 73 | 7,300 | ₹10,00,100 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
34,12,500
Anchor portion
₹46.75 Cr
at ₹137 per share
Valuation and performance
Valuation at offer price
₹137 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | −7.29 | — |
| Market cap | — | ₹764 Cr |
No price-to-earnings multiple is shown: the company reported a loss, and an earnings multiple struck on negative earnings would read as a cheap valuation while meaning the opposite.
Key performance indicators
Latest reported period
- ROCE
- 17.84%
- Debt / equity
- −99.75
- PAT margin
- −295.60%
- EBITDA margin
- −288.00%
- NAV per share
- −₹0.02
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Veranda Learning
Veranda Learning Solutions Limited, incorporated in November 2018 and operationalized in December 2020, is an educational technology company offering exam-oriented courses for competitive examinations (UPSC, SSC, CA, Banking, Insurance, RRB) and professional IT training. The company operates through multiple subsidiaries including Veranda Race (offline and hybrid coaching), Edureka (acquired in September 2021, providing online IT professional courses and corporate training), Veranda IAS (UPSC preparation), and Veranda XL (learning solutions). The company employs a multi-channel model combining online platforms, offline centres operated through Preferred Delivery Partners (PDPs), and hybrid learning formats. Edureka contributed 97% of FY2021 revenue and 72% of H1FY2022 revenue, while Veranda Race contributed 3% and 27% respectively.
Company Analysis
from RHPVeranda Learning Solutions Limited provides diversified learning solutions through online, hybrid, and offline formats for students preparing for competitive exams and professionals seeking upskilling courses.
Veranda Learning Solutions Limited, incorporated in November 2018 and operationalized in December 2020, is an educational technology company offering exam-oriented courses for competitive examinations (UPSC, SSC, CA, Banking, Insurance, RRB) and professional IT training. The company operates through multiple subsidiaries including Veranda Race (offline and hybrid coaching), Edureka (acquired in September 2021, providing online IT professional courses and corporate training), Veranda IAS (UPSC preparation), and Veranda XL (learning solutions). The company employs a multi-channel model combining online platforms, offline centres operated through Preferred Delivery Partners (PDPs), and hybrid learning formats. Edureka contributed 97% of FY2021 revenue and 72% of H1FY2022 revenue, while Veranda Race contributed 3% and 27% respectively.
Online EducationEdTechCompetitive Exam CoachingProfessional TrainingIT SkillingCorporate Training
Objects of the Issue
- Repayment or pre-payment, in part or full of all or certain of our borrowings ₹600.00 million p.27
- Repayment of a bridge loan availed specifically for the purpose of discharge of acquisition consideration of Edureka ₹251.89 million p.27
- Growth initiatives ₹500.00 million p.27
- General corporate purpose ₹477.25 million p.27
- Repayment or pre-payment, in part or full of all or certain of our borrowings ₹ 600.00 million p.104
- Repayment of a bridge loan availed specifically for the purpose of discharge of acquisition consideration of Edureka ₹ 251.89 million p.106
- Growth initiatives ₹ 500.00 million p.107
- General corporate purposes ₹ 477.25 million p.107
- Repayment of borrowings p.168
- Working capital management and business expansion p.168
- The Offer comprises of up to 14,598,540 Equity Shares for cash at price of ₹ 137 per Equity Share aggregating up to ₹ 2,000 million by our Company. The Offer will constitute 26.17% of the post Offer paid-up Equity Share capital of our Company. ₹2,000 million p.339
Issue Structure
- Total Issue
- ₹2,000 million
- Fresh Issue
- 14,598,540 equity shares of face value of ₹10 each
- Price Band
- ₹130 to ₹137 per Equity Share (Floor Price ₹130, Cap Price ₹137)
- Lot Size
- 100 equity shares (minimum bid lot)
- Face Value
- ₹10 per Equity Share
Business Model
Veranda earns revenue through multiple streams: (1) Direct online course subscriptions and enrollments via platforms and brands; (2) Hybrid and offline coaching through Preferred Delivery Partners, with revenue collected and shared with PDPs; (3) Professional certification and corporate training via Edureka; (4) Rental income from properties to Group Companies. The company operates on a B2B model (delivering services to corporates and educational institutes) and B2C model (direct consumer delivery).
Business Segments
Offers exam-oriented courses for competitive examinations including SPSC, SSC, Banking and Insurance, RRB examination through offline hybrid and offline blended learning models via 23 Preferred Delivery Partner centres
Acquired in September 2021, provides academic learning, professional skilling and corporate training services in trending courses related to technologies, including short term skilling courses, long term PGP courses and corporate learning courses
Provides services pertaining to preparation of UPSC exams through arrangement with SAI IAS Academy
Provides services pertaining to preparation of CA courses through arrangement with Trans Learning LLP
Competitive exam preparation, particularly for Indian Administrative Services and other government competitive exams
Personal development and professional certification courses
Competitive exam preparation and training for professional certifications
Software development, data science, and technology skills training delivered online to students globally, including in US and UK markets
Offers exam-oriented courses for competitive exams including State Public Service Commission (SPSC), Staff Selection Commission (SSC), Railway Recruitment Board (RRB), Banking examinations, and Insurance examinations in Tamil, Telugu, Malayalam, Kannada, English, and Hindi.
Provides exam-oriented learning programs for Chartered Accountancy examinations at Foundation, Intermediate, and Final levels with 2,000+ hours of recorded video content and 30,000+ practice questions.
Offers coaching services for UPSC preliminary and main exams, personality tests, and State Public Service Commission Group-I exams with 850 hours of video content and comprehensive study materials.
Provides online live instructor-led services in trending technologies including AI/ML, Cloud Computing, DevOps, Data Science, Big Data, Blockchain, and Cyber Security to professionals, higher education students, and IT corporations. Offers 137 short-term courses, 6 long-term courses, and corporate training programs.
Offers courses for aspirants preparing for competitive examinations including State Public Service Commission, Staff Selection Commission, Railway Recruitment Board, and Banking and Insurance examinations
Offers training services to aspiring Chartered Accountants to prepare them for the Chartered Accountancy examinations conducted by the Institute of Chartered Accountants of India
Offers training services to aspirants appearing for the Indian Administrative Service (IAS) preliminary and main examinations
Offers academic learning, professional skills and corporate training services in trending technologies like Big Data, Cloud computing, etc. to professionals and higher education students
Sale of comprehensive online learning programs for competitive and professional exams including UPSC, SSC, IAS, RRB, banking, insurance, CA, and technology courses
In-person learning programs delivered through Physical Development Centers (PDCs) located across multiple cities and states
Sale of books, web hosting services, and other educational materials
Revenue from franchisee arrangements for content and delivery partner networks
Sale of comprehensive online learning programs for competitive entrance exams and professional certifications with digitized content provided through learning management system access
In-person classroom instruction for competitive exam preparation conducted at multiple learning centers
Provision of web hosting and platform access services for learners
Sale of educational books and study materials to students
Licensing of educational content and brand to delivery partners for course delivery
SWOT Analysis
Strengths
- • Diversified learning solutions across multiple formats and exam categories(p.27)
- • Established presence through acquisition of reputable brands like Edureka and Chennai Race content(p.35)
- • Expanded global reach, particularly in the United States, through Edureka acquisition(p.36)
- • Multi-format delivery capabilities including online, offline hybrid, and offline blended models(p.27)
- • Proven track record of promoters(p.112)
- • Technology-driven, asset-light scalable model(p.112)
- • Pandemic-proof business model(p.112)
- • Diversified course offerings and channels(p.112)
- • Proven track record of Promoters with 40+ years in education sector and successful entrepreneurial history(p.164)
- • Diverse course offerings across multiple delivery channels and geographies(p.165)
- • Strong brand presence, especially Edureka with 3+ million YouTube subscribers(p.165)
- • Asset-light, technology-driven scalable business model(p.166)
- • In-house content development with 10 recording studios and 10,000 sq. ft. production facilities(p.161)
- • Result-oriented 360-degree teaching approach with continuous mentor-guided progress tracking(p.165)
- • Track record of successful strategic acquisitions (Chennai Race, Edureka)(p.162)
- • Established trademark and brand portfolio across multiple education verticals(p.172)
- • Diversified subsidiary structure offering comprehensive competitive exam preparation(p.182)
- • Strategic acquisition of Brain4ce Education Solutions for professional skills training expansion(p.178)
- • Experienced and entrepreneurial promoter team with successful track record(p.199)
- • Integrated Online to Offline (O2O) EdTech platform with diverse learning programs(p.290)
- • Multi-lingual course offerings expanding addressable market(p.291)
- • Flexible product mix with single and combo course options(p.291)
- • Significant student enrollment across online and offline models(p.290)
Weaknesses
- • Significant revenue concentration in two segments (Veranda Race and Edureka)(p.38)
- • High mentor and student advisor attrition rates affecting operational stability(p.39)
- • Significant accumulated losses across company and subsidiaries(p.49)
- • Geographic concentration of business operations in Tamil Nadu and Karnataka(p.45)
- • Limited operating history with core business commencing in December 2020(p.43)
- • Outstanding litigation involving Promoters and Directors totaling ₹185.52 million(p.40)
- • Dependence on PDPs for offline operations with risk of non-adherence to standards(p.37)
- • Unregistered intellectual property in patents and copyrights(p.38)
- • Heavy reliance on secured NCDs with Edureka shares as collateral and redemption obligations(p.41)
- • Low student retention rates at 18-21 percent(p.38)
- • Limited trademark protection globally(p.49)
- • IP infringement risk in non-protected jurisdictions(p.49)
- • Significant data security compliance burden(p.48)
- • Recent incorporation limits operational history(p.54)
- • Limited operational history – company commenced operations only in December 2020(p.158)
- • Significant operational losses and negative profitability across all periods(p.158)
- • Heavy debt load requiring refinancing – strategy focuses on rationalizing indebtedness through IPO proceeds(p.168)
- • Dependence on Preferred Delivery Partners for offline expansion with revenue-sharing arrangement risks(p.160)
- • Limited scale of student enrollment during early operations – 42,667 total enrollments in 9 months(p.158)
- • Significant accumulated losses and negative equity position(p.215)
- • High debt burden with substantial borrowings and lease liabilities(p.214)
- • Limited profitability with persistent operating losses across all reporting periods(p.215)
- • Promoter concentration with 87.66% shareholding held by three individual promoters(p.199)
- • Significant accumulated losses and negative equity position(p.244)
- • High debt-to-equity ratio indicating significant financial leverage(p.254)
- • Negative working capital position(p.255)
- • Substantial goodwill from acquisitions at risk of impairment(p.239)
- • Low current ratio indicating liquidity stress(p.253)
Opportunities
- • Expansion through strategic acquisitions and partnerships in ed-tech sector(p.35)
- • Growth in online education driven by increasing internet penetration and demand for quality coaching in Tier-2/Tier-3 cities(p.27)
- • Diversification into new course segments and competitive examination categories(p.40)
- • Expansion of offline hybrid and blended learning model through additional PDPs(p.37)
- • Leveraging Edureka's established platform and global presence for corporate training(p.40)
- • Expansion through content creation and technology investment(p.107)
- • Strategic acquisition and partnership strategy(p.107)
- • Entry into new Ed-Tech segments(p.107)
- • Massive addressable market – Indian online education market expected to grow 3.7x to US$10.4bn by 2025(p.145)
- • Demographic dividend – 35.8% of population below 20 years of age vs 23.6% in China(p.136)
- • Geographic expansion through PDC network in Tier 2 and Tier 3 cities(p.167)
- • Adding new courses across K-12 and higher education to serve students from early age through professional employment(p.167)
- • National Education Policy 2020 driving higher education GER target from 26.3% to 50% by 2035(p.151)
- • Increased technology adoption post-COVID creating blended/hybrid education as new normal(p.154)
- • Strategic acquisition opportunities in fragmented exam-oriented and upskilling markets(p.167)
- • International expansion opportunity – Edureka operations in US and presence in 170+ countries(p.165)
- • 100% foreign investment permitted through automatic route in test preparatory services sector(p.174)
- • Expansion into multiple competitive exam verticals and professional courses(p.183)
- • Growth in online learning and digital content delivery through acquired platforms(p.177)
- • Partnership and licensing model expansion through franchising agreements(p.181)
- • Expansion through inorganic growth strategy via strategic acquisitions(p.291)
- • Significant revenue opportunity from international markets through Edureka(p.291)
- • Expansion into new vernacular languages to increase addressable market(p.291)
- • Growth through continuous content updation and curriculum alignment(p.291)
Threats
- • Intense competition from organized and unorganized players with potential fee pressure(p.44)
- • Regulatory uncertainty in unregulated coaching and training sector(p.43)
- • Cyclical nature of business tied to academic calendar and exam schedules(p.43)
- • Changes to examination syllabi and formats requiring costly updates to study materials(p.42)
- • Vulnerability to natural calamities in Tamil Nadu and Karnataka operations(p.45)
- • Risk of cyber-security breaches and data privacy regulatory compliance costs(p.44)
- • Dependence on evolving technology infrastructure and third-party IT service providers(p.44)
- • Impact of COVID-19 on demand for online learning post-pandemic(p.25)
- • COVID-19 pandemic and future disease outbreaks(p.50)
- • Economic slowdown in India(p.51)
- • Indian macroeconomic and political instability(p.51)
- • Regulatory and legal changes(p.54)
- • Natural and man-made disasters(p.55)
- • Competition law enforcement(p.57)
- • Highly competitive fragmented market with both organized and unorganized regional and national players(p.169)
- • Digital divide threatens market penetration – only 24% of households have internet access, 4% in rural areas(p.139)
- • Regulatory risk from state coaching center registration laws with penalties up to ₹100,000(p.171)
- • Potential further COVID-19 disruptions despite pandemic-proof model claims(p.168)
- • High student dropout rates affecting revenue – rural-urban divide compounds the challenge(p.135)
- • Dependence on short-term lease agreements for PDCs creating operational continuity risk(p.169)
- • Strong competition from well-funded international players (Coursera, Udemy, etc.) in higher education and reskilling(p.142)
- • Intense competition from established EdTech players and traditional coaching institutes(p.218)
- • Dependence on regulatory frameworks governing telemarketing and online education(p.172)
- • Compliance requirements across multiple education and consumer protection regulations(p.173)
- • Exposure to cyclicality in competitive examination schedules and government policy changes(p.218)
- • Intense competition from both organized and unorganized players in fragmented market(p.292)
- • Risk of regulatory changes affecting operations and fee structure(p.291)
- • Foreign exchange volatility affecting international revenue streams(p.291)
- • Dependence on continuous syllabi updates and curriculum changes by governing bodies(p.291)
- • Brand reputation risk affecting student enrollment(p.290)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Kalpathi S. Aghoram | Promoter | 29.22% | — |
| Kalpathi S. Ganesh | Promoter | 29.22% | — |
| Kalpathi S. Suresh | Promoter | 29.22% | — |
| Mr. Kalpathi S. Aghoram | Promoter | 29.22% | 21.58% |
| Mr. Kalpathi S. Ganesh | Promoter | 29.22% | 21.57% |
| Mr. Kalpathi S. Suresh | Promoter | 29.22% | 21.57% |
| Not named individually in this section | Promoter/Promoter Group | — | — |
| Kalpathi S. Aghoram | Promoter | 29.22% | — |
| Kalpathi S. Ganesh | Promoter | 29.22% | — |
| Kalpathi S. Suresh | Promoter | 29.22% | — |
| Kalpathi S Aghoram | Promoter | 33.34% | — |
| Kalpathi S Ganesh | Promoter | 33.33% | — |
| Kalpathi S Suresh | Promoter | 33.33% | — |
| Mr. Kalpathi S. Aghoram | Promoter | — | — |
| Kalpathi S Suresh | Promoter | — | — |
| Kalpathi S Ganesh | Promoter | — | — |
| Kalpathi S Aghoram | Promoter | — | — |
Leadership
Kalpathi S. Aghoram · Promoter
Kalpathi S. Ganesh · Promoter
Kalpathi S. Suresh · Promoter
M. Anantharamakrishnan · Company Secretary and Compliance Officer
R. Rangarajan · Chief Financial Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Veranda Learning IPO FAQs
What is the lot size of Veranda Learning IPO?
The minimum lot size of Veranda Learning IPO is 100 shares. One lot costs ₹13,700 at the cut-off price.
When does Veranda Learning IPO open and close?
Veranda Learning IPO opened for subscription on 29 Mar 2022 and closed on 31 Mar 2022.
What is the listing date of Veranda Learning IPO?
Veranda Learning IPO listed on 11 Apr 2022.