Veranda Learning Solutions to raise Rs 300 crore in preferential issue

Chennai-based Veranda Learning Solutions (Veranda), a public listed EdTech company, said on Thursday that its Board of Directors has approved a preferential issue to  raise Rs 300 crore.

This will be subject to the approval of shareholders  at an EGM on October, 6.  This raise includes an investment of Rs 61.4 crore to be subscribed by the promoters in the form of convertible warrants.

The fundraise is through a mix of preferential offer of equity shares and convertible warrants both at a price of Rs 307 per share. Each warrant is convertible into one Equity Share and the conversion can be exercised at any time within a period of 18 months from the date of allotment. About 25 per cent of the total consideration for convertible warrants will be payable at the time of application.

In the month of May, the company had got approval from its shareholders for a debt fundraising of up to Rs 1,000 crore through the issuance of NCDs/Bonds. This was to fuel in-organic growth through acquisitions.

“We are pleased with the response to the private placement and the success of the fund raise 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,” said Kalpathi S Suresh, Chairman and Executive Director, Veranda Learning Solutions.