Veranda Group has received approval to raise ₹425 crore from BPEA Investment Managers Pvt. Ltd. (BPEA Credit) by way of issuance of Non-Convertible Debentures (NCDs) to fuel its growth trajectory for financing acquisitions, refinancing existing loans and bolstering working capital requirements.
The fund raise is expected to be completed in the next three to six months, said Veranda Learning Solutions Ltd., a listed education firm, in a regulatory filing.
“The proceeds from the NCD issuance will be instrumental in supporting our expansion plans, enabling us to pursue strategic acquisitions, enhance operational efficiencies and drive long-term value creation for our stakeholders,” said Veranda Learning ED & Chairman Suresh Kalpathi.
“The funds will be used for further acquisitions and fill the gaps in the Veranda ecosystem. The company is expected to complete these acquisitions by the first half of FY25, strengthening its position as a market leader in the education sector,” said BPEA Credit Group Head Kanchan Jain.
On Thursday, Veranda Learning’s subsidiary VXL Learning Solutions Pvt. Ltd. said it had acquired 50% stake from the existing shareholders of Tapasya Educational Institutions Pvt. Ltd. for ₹120 crore. The balance stake will be acquired in two more tranches within four years.
Tapasya provides educational services to junior colleges, colleges and other educational institutions in Bengaluru and Hyderabad.
