Veranda Learning is Up by 15% on BSE, While 8.7% Down on NSE

Veranda Learning, an education technology company, had an unexpected debut on the stock exchanges on Monday. On the BSE, the stock started at a premium of nearly 15% above its IPO price of 137 per share, while on the NSE, it opened at an 8.7% discount.

The Veranda Learning stock listed price discrepancy persisted throughout the day, with the stock closing at 160.4 on the BSE, 17 percent above the issue price, and at 131.25 on the NSE, 4 percent below the IPO price.

The explanation for the difference in stock price on debut could not be determined, but market players said that arbitrageurs would be unable to profit from the price differential on the two exchanges since anybody who acquired the stock on Monday would be unable to sell it on Tuesday.

Only individuals who applied for and received a subscription to the Veranda IPO were eligible to sell the shares. For the first 10 days following an IPO with a capitalization of less than 250 crores, all trading is on a trade-for-trade (T-to-T) basis. When a stock in the T-to-T sector is acquired, the buyer is required to accept mandatory delivery.

For equities with an IPO size of less than Rs 250 crore, there is a 5% circuit filter. The stock closed at a 5% higher circuit on the NSE than the starting price of 125. The shares closed the day on the BSE at a price that was 2% higher than the IPO price.

The IPO of Veranda Learning, situated in Chennai, was oversubscribed 3.53 times. Retail quotas were subscribed 10.8 times, HNI quotas were subscribed 3.9 times, and institutional investors’ quotas were subscribed just over 2 times.

For the fiscal year ending March 2021, Veranda Learning reported a loss of 8.3 crores and revenue of 2.54 crore. On a sales of 15.5 crores, it lost 18.3 crores in the six months ended September 2021.

Market Lot

The minimum market lot for the Veranda Learning IPO is 100 shares, with a Rs 13,700 application fee. Retail investors may apply for up to 14 lots with a total application amount of Rs 191,800.

Allotment & Listing Dates

The IPO date for Veranda Learning is March 29, 2022, and the IPO closure date is March 31, 2022. The IPO allotment date is April 5, 2022, and the IPO is expected to list on April 11, 2022.

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Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.