Veranda Group Secures INR 425 Crore NCD Funding from BPEA Credit

Veranda Group Secures INR 425 Crore NCD Funding from BPEA Credit

Veranda Learning announced that the group has received approval to raise funds for an amount up to INR 425 crore by way of issuance of Non-Convertible Debentures (NCDs) to funds managed and /or arranged by BPEA Investment Managers Private Limited (BPEA Credit). This strategic move aims to fuel the company's growth trajectory by financing acquisitions, refinancing existing loans, and bolstering working capital requirements. 

Mr. Suresh Kalpathi, Executive Director and Chairman of Veranda Learning, expressed enthusiasm about this development, stating, “This decision aligns with Veranda Learning's strategic vision to further solidify our position as a leader in the education space. 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.” 

Veranda Learning remains focused on driving innovation, expanding its reach, and delivering valueadded solutions to its customers while consistently delivering strong operating margins. The company's strategic decision to raise debt through NCDs underscores its confidence in the future growth prospects of the education sector and its ability to capitalize on emerging opportunities. 

Speaking on this association, Ms Kanchan Jain, Head of BPEA Credit Group commented, “We are pleased to partner with Veranda Group, a leader in India’s education space to support initiatives that transform education delivery and enhance access to quality education thereby creating a lasting impact. This investment is in line with our Fund’s objective of participating in growth-oriented businesses and partnering with industry leaders by providing bespoke capital solutions.” 

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 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. 

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

Speaking on the transaction, Mr. Atul Thakkar, Director, Anand Rathi Investment Banking commented, “Anand Rathi Group sees immense potential in this sector and pleased to have facilitated transactions exceeding US$450m in FY24 alone, including this significant deal. This transaction marks a milestone for the education sector, fostering consolidation in cash-generating assets. It will attract investor support for good quality platforms like Veranda. The proceeds will be strategically used for acquiring complementary assets and restructuring. We're committed to supporting Veranda's longterm goal of becoming the country's leading education platform, offering exceptional results for students and inviting other ecosystem players to join a listed company.” 

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