Veranda Learning has Been Permitted to Use a Preferential issue to Raise INR 250 Cr

Nitin Konde, Varun Bhardwaj

Dec 13, 2024 — 3 min read

Veranda Learning to Raise INR 250 Cr via Preferential Issue

Veranda Learning, an education company based in Chennai, has been given permission to finance up to INR 250 crore through a preferred issue as part of a larger fundraising plan that would be completed this fiscal year. The company is overjoyed by the strong reaction to the private placement, which was spearheaded by well-known investors. According to a statement from Suresh Kalpathi, Executive Director and Chairman of Veranda Learning, the company's successful financing gives it a strong capital base to fuel its next stage of expansion and shows that investors believe in the company's potential for success. The money will be used by the corporation for expansion of its current operations, deferred consideration payments, and acquisitions.

The company run by Suresh Kalpathi intends to pay INR 126.2 crore for a 51% share in BB Publications Private Limited and INR 45.5 crore for a 65% share in Navkar Digital Institute Private Limited. A reputable online resource for prospective CAs, BB Virtuals was formed by Bhanwar Borana, a CA instructor with more than 12 years of expertise. Veranda intends to broaden its audience and provide additional resources through BB Virtuals to assist students earning professional certifications in commerce. Navkar, a well-known offline platform for Gujarati CA candidates, was established by educator Hiteshkumar Shah, who has over 17 years of teaching expertise.

Acquisitions will Enhance Veranda’s Portfolio

Together with JK Shah Classes, these additions will expand Veranda's current portfolio of coaching services for chartered accountants, cost management accountants, and the Association of Chartered Certified Accountants. According to Kalpathi, the Chennai-based business is on schedule to complete all acquisitions this fiscal year, and no additional stock dilution in Veranda Learning is anticipated after this fiscal year.

Veranda purchased Kerala-based Logic Management Training Institutes in April in an effort to broaden its clientele and offer a greater selection of educational programmes. Logic also works with JK Shah Classes as a key component of Veranda's commerce education program. This occurred one month after BPEA Investment Managers helped it raise INR 425 crore in debt financing through non-convertible debentures. Veranda has invested more than INR 1,000 crore to acquire more than a dozen businesses, making acquisitions the cornerstone of its whole growth plan.

Strengthening the Foundation by Hiring Experts

In an effort to professionalise the board with education leaders, the Chennai-based education corporation appointed three new board members: Prof. Jitendra Kantilal Shah, Prof. Ashok Misra, and N. Alamelu. By hiring Aditya Malik as Group Chief Operating Officer, Veranda Learning has already taken a step towards professionalising its executive management with the goal of bolstering operations and leadership. In the school industry, which is currently dealing with a reality check due to layoffs and financing issues after the pandemic-driven spike, Veranda is still growing and expanding.

Veranda reduced its losses and more than doubled its sales in FY24. Veranda's strategy, a four-pillar approach—academics, commerce, government exam preparation, and study abroad—is centred on adding value. According to the corporation, the commerce vertical has already performed well, with an anticipated profit of Rs 100 crore for FY26 and an EBITDA of INR 120 crore for FY25. Core operational efficiency is measured by EBITDA, or earnings before interest, taxes, depreciation, and repayment.