Veranda Learning Solutions Ltd, the Chennai-based enterprise offering end-to-end solutions provider in the education space, has received approval to raise funds for an amount up to ₹425 crore by way of issuance of Non-Convertible Debentures (NCDs) to funds managed and arranged by BPEA Investment Managers Private Limited (BPEA Credit).

The NCD is part of a larger fund raise to be completed in the next three to six months. As discussed in its long-term vision, the company will balance the risk profile by raising equity-like instruments in the future. This will be used for further acquisitions and fill 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, according to a release.

Suresh Kalpathi, Executive Director and Chairman of Veranda Learning, stated that the proceeds from the NCD issuance will be instrumental in supporting the company’s expansion plans, enabling it to pursue strategic acquisitions, enhance operational efficiencies, and drive long-term value creation for our stakeholders.

Kanchan Jain, Head of BPEA Credit Group, said the investment is in line with the fund’s objective of participating in growth-oriented businesses and partnering with industry leaders by providing bespoke capital solutions.

Anand Rathi Advisors were the lead bankers who helped in arranging the funds for the company.

Atul Thakkar, Director, Anand Rathi Investment Banking, said that the Group sees immense potential in this sector and has facilitated transactions exceeding $450 million in FY24 alone, including this deal.

At the time of filing this report, the company’s share price on the NSE closed at ₹185.80, up by 1.45 per cent.