Veranda Learning Solutions beats GMP and lists at 20% premium

• Shares of Veranda Learning Solutions list at ₹157 while the shares were allotted at ₹137 per share.
• The IPO received decent response from investors as it was subscribed 3.53 times on the last day of the bidding.
• The market capitalisation of the company stood at ₹875 crore.

Shares of online and offline learning solutions provider Veranda Learning Solution made a decent listing on the National Stock Exchange (NSE) and BSE at 20% premium over the issue price of ₹137 apiece.

Post-listing, the market capitalisation of the company stood at ₹875 crore, according to BSE data.

The shares of Veranda Learning Solution were trading at ₹157, higher by 14.6% at 10.01 a.m., on April 11.

The IPO was open between March 29 and March 31 ⁠and was oversubscribed 3.53 times by investors. Retail investors had over subscribed the IPO by 10.76 times.

The listing gains of ₹20 is a bit more than the grey market premium, which indicated a premium of ₹15.

The company offers online and offline coaching services for career-defining courses such as UPSC, chartered accountancy, banking, and government exams to students, graduates, professionals, and corporate employees. However, it is a loss making entity with losses of over ₹8 crore in FY21.

Analysts had expected a dull opening for the IPO and suggested avoiding future investment in the stock. “Veranda learning may open with a flat or mild discount on the listing day mainly due to the company’s dull fundamentals and lack of institutional interests. Investors may avoid taking any positions in the stock and subscribed investors may book their positions on the listing day,” Ravi Singhal, vice president and head of research at Share India.


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