InvestorQ : Can you tell me about the final subscription status of Veranda Learning Solutions IPO?
Niti Shenoi made post

Can you tell me about the final subscription status of Veranda Learning Solutions IPO?

ishika Banerjee answered.
11 months ago

The IPO of Veranda Learning Solutions at Rs.200 crore is fairly small. It consisted entirely of a fresh issue of shares for the entire amount. On day 1 and on day 2 there was robust retail response. At the close of subscription on 31-March, the IPO of Veranda Learning Solutions IPO was subscribed 3.53 times overall. There was solid traction seen from the retail segment with reasonable interest coming in from the HNI / NII segment and the QIB segment too.

Let me first run you through the overall subscription numbers of Veranda Learning Solutions IPO subscription. Out of the 117.88 lakh shares on offer, Veranda Learning Solutions saw bids for 415.55 lakh shares, which translates into oversubscription to the tune of 3.53 times. As is the case in many of these smaller sized issues, the subscriptions were dominated by retail investors, with HNIs and QIBs playing a more subdued role in the IPO overall.

Let me look at the QIB portion of the IPO. It may be recollected that Veranda had placed 34.125 lakh shares to 3 anchor investors, ahead of the IPO. These anchor investors included AG Dynamics Funds, Resonance Opportunities Fund and Next Ventures Orbit Fund. The overall anchor allocation was Rs.46.75 crore; or 23.4% of the issue size. The QIB portion, net of anchor allocation had 79.42 lakh shares, which got bids for 160.64 lakh shares at the close of the IPO. This translates into 2.02 times subscription for QIBs.

Let us turn to the HNI / NII portion, which got subscribed 3.87 times. Out of the total available HNI / NII quota of 23.08 lakh shares, Veranda learning Solutions got applications for 89.31 lakh shares. That is around 3.87 times the size of the quota available for HNI / NII. Most of the HNI / NII subscriptions come in on the last day as these are dominated by the high net worth individuals and other corporates and investment vehicles.

Finally, we come to the retail portion. This portion got subscribed 10.76 times but it must be remembered that the retail quota is just 10% of the issue size. In the case of retail investors; out of the 15.384 lakh shares available on offer, valid bids were received for 165.60 lakh shares. Out of these bids, 131.84 lakh shares were at cut-off price. The IPO of Veranda was priced in the band of (Rs.130 to Rs.137) and it closed for subscription on 31st March 2022.