Veranda Learning IPO Market experts say that Veranda Learning Solutions may be listed on April 11 at a premium of 5-10 per cent over its issue price of Rs 137 per equity share. Though it is a loss making company, it is being speculated considering the positive market condition and strong subscription of IPO. The listing of this share will be seen at a premium to the issue price.
The IPO of Veranda Learning Solutions, an online and offline learning solutions provider, had closed on 29 May and closed with a whopping 3.53x on March 31. The retail portion of the IPO was filled at 10.76 times while that of non-institutional investors was filled at 3.87 times while that of QIBs was filled at 2.02 times.
The company has raised Rs 200 crore through this IPO. The money raised from this IPO will be used to pay off the company’s debt to meet the cost of acquisition of Edureka and other expansion plans.
How can the listing be on April 11?
Prashant Taapsee of Mehta Equities says that looking at the strong subscription in this IPO, it seems that this stock can be listed with a premium of 5-10 percent in the best case.
Let us inform that Veranda Learning Solutions was established in 2018. It provides both online and offline learning solutions to the students of UPSC, CA, Banking and other government competitive exams. Apart from this, the company provides training and learning facilities to other graduates, professionals and corporate employees.
With the huge increase in the number of registrations taking place in the company, its income has also increased in recent years. However, the company is still making losses. Let us tell you that there is no other listed company in this segment in the market.
Vijay Dhanotia of CapitalVia Global Research Says that the market sentiment is very positive at the moment and the gray market premium of the stock suggests that Veranda Learning may be listed on April 11 with a premium of more than 8 percent.
Whereas Saurabh Joshi of Marwadi Financial Services says that the gray market premium indicates that Veranda Learning may have a strong listing on April 11. It is worth noting that according to the data available on IPO Watch and IPO Wala, Veranda is getting quoted at Rs 152 per share at a premium of 10 per cent to the issue price of Rs 137 per share of IPO in the gray market.
It is also to be noted that almost all the brokerage houses have given an avoid rating to this stock. They argue that this company is making loss with negative operating cash flow, so it is better to stay away from it.