Veranda Learning raises Rs 357 Cr via QIP

Education firm Veranda Learning has raised Rs 357.42 crore through its first Qualified Institutional Placement (QIP), a mechanism that allows listed companies to secure capital by issuing shares to institutional investors without the need for extensive regulatory approvals.

The placement saw participation from a range of domestic and international institutional investors, including Authum Investment, Trust Mutual Fund, Resonance Opportunities Fund, Necta Bloom VCC, and Saint Capital Fund, among other long-only investors.

The funds were raised through the issuance of 1,58,71,173 equity shares with a face value of Rs 10 each, at an issue price of Rs 225.20 per share, below the floor price of Rs 236.92. Shareholder approval for the QIP was obtained at the Extraordinary General Meeting held on 10 June 2025. 

Approximately Rs 310 crore from the QIP will be used to repay non-convertible debentures (NCDs) issued to Ascertis Credit (formerly Barings Private Equity Asia) in March and April 2024.

In March 2024, Veranda Learning had raised Rs 425 crore through NCDs from BPEA as part of a broader fundraising plan. NCDs are loans taken by companies from investors that must be repaid with interest and cannot be turned into shares.

The company said the remaining funds from the QIP will be used for general needs such as improving technology, developing content, paying pending dues, and making the platform more scalable.

“This QIP marks a pivotal step towards achieving financial agility and operational scale. A large portion of the proceeds will be used to deleverage our balance sheet, including repayment of the Ascertis Credit facility, significantly improving our debt profile. The remainder will be invested in strategic growth initiatives across our verticals, aimed at unlocking long-term shareholder value,” said Suresh Kalpathi, Executive Director and Chairman of Veranda Learning Solutions.

The QIP is expected to strengthen the company’s financial position by reducing debt and increasing flexibility for future growth, while the addition of institutional investors may support improved share trading and market visibility.

Veranda Learning reported a total income of Rs 518.3 crore in the financial year that ended this March, up 40.1% YoY, driven by increased admissions, higher bookings, service expansion, and fair value adjustments.

However, the Chennai-based company’s consolidated loss in FY25 ballooned to Rs 247.5 crore from Rs 76.7 crore recorded in the previous fiscal year, largely due to higher non-operating expenses such as finance costs and depreciation.

Founded in 2018 by the Kalpathi AGS Group, Veranda Learning 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.