Veranda Learning share price: Buy, sell or hold: What should Veranda Learning investors do post listing?
On BSE, shares of Veranda Learning got listed at Rs 157, a premium of Rs 15 per cent. The scrip hit 5 per cent upper circuit post listing at Rs 164.85. On the other hand, the counter had a poor start on National Stock Exchange as it got listed at Rs 125, a discount of 9 per cent. The scrip saw some buying later to hit Rs 131.25, its daily circuit limit of 5 per cent, but was still trading at a discount to IPO price of Rs 137.
Given the stock is listed in the ‘T’ segment, the buyers will have to take delivery of the shares and they cannot trade them on an intraday basis, which limits the arbitrage opportunity.
That said, the majority of the experts are suggesting that investors book profits on the counter, if they have made any. They also advised against making any fresh entries.
Astha Jain, Senior Research Analyst, Hem Securities said the company is showing divergence on both the exchanges but the listing has been better than expected for the loss-making company.
“If investors are making any profits, they should book them and exit the counter. Fresh entry at current levels is not recommended,” said Jain, whose brokerage had an ‘avoid’ rating on the issue.
Arafat Saiyed, Senior Research Analysts at Reliance Securities is also recommending booking profits in the stock. “A 20 per cent upside is a decent profit for Veranda, much better than expected. One should look to make a fresh entry in the counter if it’s available below Rs 120 or below.”
The Rs 200 crore IPO of the education services player was subscribed 3.53 times, thanks to strong demand from retail bidders. The issue was open for subscription between March 29-31 in the price range of Rs 130-137 per share.
The quota reserved for retail bidders was subscribed 10.76 times, whereas HNI quote fetched 3.87 times bids. The allocation for institutional bidders was subscribed a little more than two times.
The company offers online and offline coaching services for career-defining courses such as UPSC, Chartered Accountant, banking, and government exams to students, graduates, professionals, and corporate employees.
