IPO Update: Veranda Learning Solutions Ltd IPO Subscribed 3.43 Times on Day 3

IPO Update: Veranda Learning Solutions Ltd IPO Subscribed 3.43 Times on Day 3 Investors responded well to Veranda Learning Solutions Limited's initial public offering, with the issue being subscribed 3.43 times by the afternoon of the final day of bidding on March 31. The subscription period for the Veranda Learning IPO began on March 29, 2022, and will end today. The offer's price range is Rs 130-137 per share, with the business hoping to raise Rs 200 million through the public offering. Investors have submitted bids for 4.04 crore equity shares, out of a total of 1.17 crore units available. Retail investors continued to outnumber institutional investors, subscribing 10.26 times the amount made aside for them. Non-institutional investors have placed bids totaling 3.71 times their permitted quota, while qualified institutional purchasers have placed bids totaling 2.02 times the total reserved part. The company has set aside up to 75% of the overall offer for qualified institutional buyers (QIBs), with the remaining 15% going to non-institutional investors (NIIs). The remaining 10% of the allotment will go to retail bidders. The proposed date for share distribution is April 5, 2022. Bidders should log in to the BSE website or the website of the official registrant of the IPO, KFintech Private Limited, to monitor their IPO status. Veranda Learning's stock will be listed on both the NSE and the BSE, with a projected debut date of April 7, 2022. "On a pre-issue book value basis, the corporation is bringing the issue at an 8.15x price-to-book multiple." Although the company's business model is technology-driven, asset-light, and scalable, with a proven track record of promoters and a result-oriented method of teaching with a 360-degree approach and diversified course offerings and delivery channels, we recommend "avoid" on the issue based on the company's financials and valuations, according to Astha Jain, Senior Research Analyst at Hem Securities. Veranda reported a loss of Rs 8.3 crore on revenue of Rs 2.54 crore in the fiscal year ended March 2021, and a loss of Rs 18.3 crore on increased revenue of Rs 15.46 crore in the six months ended September 2021. According to Arafat Saiyed, Research Analyst at Reliance Securities, the IPO is priced at 25x market cap/sales for a loss-making company with a low track record, which appears pricey, and the market is highly competitive. "Despite having a diverse course offering and delivery channels, professionally qualified human resources, and a strong brand presence, Veranda's business operations with losses raises concerns." According to analysts at Reliance Securities, the IPO is "aggressively priced" and "barely leaves anything important on the table for investors in the medium term." Students, aspirants and graduates, professionals and corporate personnel can benefit from the company's diversified and integrated learning solutions, which are available in online, offline hybrid, and offline blended formats.