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Veranda Learning’s strong entry in the market, 20% upper circuit on BSE, sell shares or stay?

Shares of Veranda Learning got listed on BSE with a premium of more than 14.5 percent. The upper price band under the IPO was Rs 137, while it was listed on the BSE at Rs 157.

Veranda Learning Solutions Stock Price: Shares of Veranda Learning Solutions, which provides offline-online coaching for UPSE, CA, Banking and other government exams, have made a strong entry in the market today. The company’s stock got listed on BSE with a premium of over 14.5 per cent. The upper price band under the IPO was Rs 137, while it was listed on the BSE at Rs 157. At the same time, it rose 20 percent to Rs 165 in intraday. The question that arises is what should investors do after getting great returns on listing. Should stay in the stock or take profit.

What should investors do in stocks?

IIFL’s VP-Research Anuj Gupta says that Veranda learning solution is an online education system provider company. It is the first company to be listed in this type of business in the market. The way the demand for online education system is increasing in the country, the outlook of the company looks better. Although the issue size is very small and it is only around 200 crores. Nevertheless, the outlook of the company looks better. The stock can outperform in the short term. The 200 level can be seen in the stock in a few days. Nevertheless, investors are advised to take a decision regarding the stock only after seeing their risk profile.

200 crore issue

The IPO of Veranda Learning Solutions opened on March 29 and closed on March 31. The size of the issue was Rs 200 crore. The IPO got a decent response from the investors. The company’s IPO was subscribed about 3.53 times in 3 days. About 10.76 times the bidding for the reserve share for retail investors was done. While the reserve share for non-institutional investors was 3.87 times and for qualified institutional buyers, the reserve share was filled 2.02 times.

Details about the company

Veranda Learning offers online and offline coaching to students, graduates, professionals and corporate employees for career government exams like UPSE, CA and Banking and for skill enhancement. In the first nine months of the current financial year i.e. in April-December 2021, 42,667 students and professionals have been enrolled in Veranda Learning. In which 16,793 in offline model and 25,874 in online model. The company will use the proceeds from the IPO to pay off debt and meet other expansion plans.

(Disclaimer: Shares are adviced by experts. These are not the personal views of Digitnews.in. Markets are subject to risk, so take expert opinion before investing.)

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