July 23, 2025: Chennai-based education firm Veranda Learning Solutions has executed a strategic capital restructuring with the completion of its first Qualified Institutional Placement (QIP), raising ₹357.42 crore to rebalance its financial commitments and fuel operational scale.
Veranda Learning Solutions operates nearly 200 centres across India, the company serves 75,000+ students annually across test prep, skilling, and higher education. Through its subsidiaries, Veranda has partnered with over 25 companies and continues to grow.
As part of a structured plan to optimise its capital stack and reduce leverage, Veranda Learning issued 1,58,71,173 equity shares at ₹225.20 per share—below the floor price of ₹236.92—garnering support from a diversified base of institutional investors. Key participants included Authum Investment, Trust Mutual Fund, Resonance Opportunities Fund, Necta Bloom VCC, and Saint Capital Fund, among others.
The equity raise follows shareholder approval secured at the company’s Extraordinary General Meeting held on June 10, 2025.
Approximately ₹310 crore from the issue will be directed towards repayment of non-convertible debentures (NCDs) previously issued to Ascertis Credit (formerly Barings Private Equity Asia) in March and April 2024. These NCDs were part of a ₹425 crore raise aimed at supporting the company’s earlier expansion initiatives.
By prioritising debt servicing, Veranda aims to reduce its interest burden and improve overall credit standing. The move aligns with broader financial restructuring efforts to free up capital for future growth and stability.
Veranda to Focus on Core Investment and Platform Development
The remaining capital from the QIP will be allocated to internal initiatives such as content development, technology enhancement, pending liabilities, and improving platform scalability. This balanced capital deployment is expected to position the firm for stronger performance and operational efficiency over the medium term.
Commenting on the development, Suresh Kalpathi, Executive Director and Chairman of Veranda Learning Solutions, said: “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.”
Despite reporting a 40.1% year-on-year increase in total income to ₹518.3 crore for FY25, Veranda posted a consolidated loss of ₹247.5 crore—more than triple its loss of ₹76.7 crore in the previous fiscal. The higher loss was attributed to non-operational costs, particularly finance expenses and depreciation.
The company, which was founded in 2018 by the Kalpathi AGS Group, continues to expand its portfolio of exam preparation and professional upskilling programmes across digital and hybrid models. As it enters its next phase, institutional participation and improved balance sheet flexibility are expected to enhance trading visibility and long-term value creation.
