Veranda Learning allocates 20 lakh shares to promoters at 70% premium

Chennai education firm Veranda Learning has allocated 20 lakh equity shares to the company's promoters at Rs 307 per share—a 70% premium over Friday’s (April 26) closing price of Rs 179.95 per share.

This allotment follows the conversion of 20 lakh warrants, with a balance amount of Rs 46.05 crore, representing 75% of the warrant issue price paid on April 26, 2024. The promoters had previously paid 25% of the issue price upon warrant allotment on October 28, 2022. 

Warrants are financial instruments that give the holder the right to buy company shares at a certain price within a specified time frame. In this case, the warrants have been converted into equity shares.

The Allotment Committee approved the allotment of equity shares on April 26, 2024. The company said this move boosts its net worth and substantially enhances its liquidity.

“The strategic decision to exercise warrants at Rs 307 per share reflects the inherent strength of the company’s business and the promoters’ confidence in the company’s growth potential,” Suresh Kalpathi, Executive Director and Chairman of Veranda Learning Solutions, said, adding that the company will continue on its vision to build the Veranda ecosystem.

Last week, the education firm agreed to acquire Kerala-based Logic Management Training Institutes Pvt. Ltd.

These developments come a month after Veranda Learning raised Rs 425 crore in debt funding through non-convertible debentures from BPEA Investment Managers Pvt Ltd.

The funding aims to fuel the company’s growth by financing acquisitions, refinancing existing loans, and bolstering working capital requirements. The acquisitions, aimed at filling the gaps in the Veranda ecosystem, are expected to be completed by the first half of FY24-25.

Founded in 2018 by the Kalpathi AGS Group, Veranda Learning Solutions is a publicly-listed education company, which offers a bouquet of training programmes for competitive exam preparation and a slew of professional skilling and upskilling programmes.