The allotment for the ₹200-crore initial public offering (IPO) of Veranda Learning Solutions is likely to be finalised today. Investors can check their allotment status on the issue's registrar KFin Technologies Private Limited's website as well as BSE.
The IPO, which was subscribed 3.5 times, was open from March 29-31 and the price band for the issue was set at ₹130-137 per share. Veranda Learnings shares are likely to list on bourses on April 7, 2022.
The public issue received a decent response from investors across all categories with retail investors subscribing the most. The retail portion was bid 10.76 times their allotted quota. Meanwhile, the quota set aside for non-institutional investors was subscribed 3.87 times and that of qualified institutional buyers 2.02 times.
Here's how you can check the allotment status:
1) Go to the website: https://www.bseindia.com/investors/appli_check.aspx.
2) Select ‘Equity’ and then from the dropdown, select issue name - "Easy Veranda Learning Solutions"
3) Enter your application number and PAN card number
4) Click on the "Search" button
Through the website of Registrar - KFin Technologies.
1) Go to the website: https://ris.kfintech.com/ipostatus
2) Select IPO name from the dropdown
3) Enter Application Number or DP ID/Client ID or PAN
4) In case of application number, select application type (ASBA or NON-ASBA) and 'Enter Application Number'. In the case of DPID/Client ID, select Depository "NSDL or CDSL" and enter "DP ID/Client ID".
5) Enter 'Captcha' and submit
The status will only appear after allotment if the details are entered correctly. In the case of non-allotment, the blocked amount will be refunded to your bank account.
The issue comprises only of fresh issuance of shares worth ₹200 crore and no offer for sale. The firm offers online and offline coaching services on UPSE, banking, government services and jobs examinations and is only the second IPO to open in March 2022.
The ₹200 crore IPO will be utilise the funds raised for the repayment of debts, payment of acquisition cost of Edureka, and growth initiatives.
Veranda Learning Solutions Limited was incorporated on November 20, 2018. Veranda is engaged in the business of offering diversified and integrated learning solutions in online, offline hybrid and offline blended formats.
In the financial year ended March 2021, Veranda posted a loss of ₹8.3 crore on a revenue of ₹2.54 crore, and in the six months period ended September 2021, the loss was at ₹18.3 crore on increased revenue of ₹15.46 crore.
Most brokerages recommend avoiding the issue due to weak financials and fundamentals of the firm.
Hem recommends avoiding the issue by looking at the company's financials and valuation. However, it added that the company’s business model is technology-driven, asset-light and scalable with a proven track record of promoters.
Reliance Securities also recommends avoiding the issue. As per the brokerage, the IPO is aggressively priced and hardly leaves anything meaningful on the table for investors in the medium-term perspective.