Veranda to raise Rs 300 cr via preferential issue | The Financial Express

Veranda to raise Rs 300 cr via preferential issue

The company has secured approvals from the shareholders at the extraordinary general meeting held on May 27, 2022, to raise debt in the form of NCDs/ bonds and other instruments up to Rs 1,000 crore. This debt and equity fundraise together would be used to fuel organic growth through acquisitions.

Veranda to raise Rs 300 cr via preferential issue
This raise includes an investment of Rs 61.40 crore to be subscribed by the promoters in the form of convertible warrants.

Chennai-based Veranda Learning Solutions (Veranda), a public-listed ed-tech company on Thursday announced that the board of directors has approved a preferential issue to raise Rs 300 crore. This raise includes an investment of Rs 61.40 crore to be subscribed by the promoters in the form of convertible warrants.

The fundraising is through a mix of preferential offers of equity shares and convertible warrants both at Rs 307 per share. Each warrant is convertible into 1 equity share and the conversion can be exercised at any time within 18 months from the date of allotment. Around 25% of the total consideration for convertible warrants will be payable at the time of application.

The company has secured approvals from the shareholders at the extraordinary general meeting held on May 27, 2022, to raise debt in the form of NCDs/ bonds and other instruments up to Rs 1,000 crore. This debt and equity fundraise together would be used to fuel organic growth through acquisitions.

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Kalpathi S Suresh, chairman and executive director of Veranda Learning Solutions, said, “We are pleased with the response to the private placement and the success of the fundraise places Veranda in a unique position with the necessary war chest to fuel the next leg of growth. At Veranda, our objective is to provide the highest quality education possible at an affordable price. To that end, we are building an eco-system to strengthen our offerings through a judicious mix of high-quality content propelled by cutting edge technology which we believe will take Veranda to greater heights.”

Founded in 2018, by the Kalpathi AGS Group, Veranda Learning Solutions offers a bouquet of training programmes for competitive exam preparation, including state public service commission, banking, insurance, railways, IAS, and CA, as well as a slew of professional skilling and upskilling programmes in trending technologies.

The company provides services through four subsidiaries: Veranda Race, Veranda CA, Veranda IAS, and Edureka – the customer-facing brand of Brain4ce Education Solutions. The company has also incorporated two new subsidiaries: Veranda Learning Solutions North America and Veranda Management Learning Solutions. These new subsidiaries will be used as vehicles for future growth, said a company statement.

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