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Veranda Learning share price may have a 'flat' opening, say experts

11 Apr , 2022   By : Kanchan Joshi


Veranda Learning share price may have a 'flat' opening, say experts

Veranda Learning shares are going to list at Indian bourses today. As per the information available on BSE website, "The equity shares of Veranda Learning Solutions Limited shall be listed and admitted to dealings on the Exchange in the list of 'T' Group of Securities." Shares of Veranda Learning Solutions Limited shall be listed at NSE and BSE in Special Pre-open Session (SPOS) on Monday, April 11, 2022.


According to stock market analysts, Veranda Learning share price may have a 'flat' opening today. They said that the company is a loss-making venture and it was offered at higher valuations as well. So, chances are very bleak for fresh investors buying stake in the company from the open market post-listing. Market experts said that the stock may list in Rs150 to Rs160 range, delivering 10 per cent to 15 per cent premium to the allottees against the issue price of Rs137 per equity share. However, much will depend on the mood of the market, analysts added.


Speaking on Veranda Learning share listing; Abhay Doshi, Founder at UnlistedArena.com said, "The integrated learning solutions player - Veranda Learning has received a dull response from QIB and HNI investors. The issue looked expensively priced as the asking rate was almost 25x price to sales for a loss making company. Thus, considering dull response and expensive valuation, it won't be surprising if the listing happens in flat to negative zone."


On why allottees can expect premium from Veranda Learning IPO listing; Ravi Singhal, Vice Chairman at GCL Securities said, "Veranda Learning Solutions Ltd shares are listing in 'Trade to Trade' category and hence short selling won't be possible in the counter. So, there can be either fresh buying or profit-booking in then counter post-listing. Therefore, in case of weak market sentiments, I am expecting this stock to list around Rs150 per share levels whereas in the case of strong market sentiments, it may list around Rs160 apiece levels. So, an allottees can expect around 10 per cent to 15 per cent listing premium from Veranda Learning share listing."


Expecting flat to discounted listing of Veranda Learning IPO; Manoj Dalmia, Founder & Director at Proficient Equities Limited said, "Veranda Learning is a loss-making company. In recent years, investors have burnt a lot after investing in such loss-making unicorns and tech companies. Apart from this, the issue is expensively priced as well. So, I am expecting flat to discounted listing of Veranda Learning shares."


Pointing towards weak fundamentals and balance sheet of the company; Ravi Singh, Vice President & Head of Research at Share India said, "Veranda Learning share price may have flat to minor discounted opening as fundamentals of the company are quite dull. Fresh investor may not show interest in the stock post listing and it may tumble after profit-booking trigger among the allottees."


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