Veranda Learning acquires test-prep institute T.I.M.E. for Rs 287 crore

Veranda Learning Solutions Ltd. has signed a definitive agreement to acquire test preparation firm T.I.M.E. (Advanced Educational Activities Pvt Ltd) for a consideration of Rs 287 crore. The stock was locked in an upper circuit of 5% at Rs 208.45 after the announcement.

“This 100% acquisition will be in a phased manner with 80% of the outstanding capital along with management control in phase 1, followed by the purchase of the remaining 20% at the end of two years,” Veranda said in a statement.

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With this acquisition, the company will enter the MBA, NEET and JEE test preparation and the preschool segment.

Veranda is a Chennai-based edtech company that offers a range of training programmes for competitive exams preparation, including State Public Service Commission, banking, insurance, railways, UPSC, Chartered Accountant and several professional skilling and upskilling programmes in trending technologies.

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Kalpathi Suresh, Executive Director cum Chairman, Veranda, said the acquisition of T.I.M.E. allows Veranda to expand its national footprint. It will also help in diversifying to the preschool and the language training segment.

Established in 1992, T.I.M.E. (Advanced Educational Activities Pvt Ltd) is a test-prep chain with a pan-India presence operating through 188 centres including franchisees present across 98 cities in India. It offers training programmes for national and state-level entrance exams like CAT, MAT, CMAT, CLAT, IIT Foundation, JEE Mains & Advanced, NEET, IPM, BBA, CUET, GATE, Bank PO, SSC, State-level admission exams and international tests like GMAT, GRE, IELTS, TOEFL and campus recruitment training.

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“We are delighted to be partnering with Veranda on the journey ahead that T.I.M.E. will be undertaking. We are confident that this will be a synergistic relationship and that much benefit will accrue to both partners. More importantly, we believe that it will also help us provide an even better product offering to our students,” said Manek Daruvala, Founder and Director of T.I.M.E.

In a separate press filing, the board approved other resolutions such as an increase of authorized capital from Rs 60 crore to Rs 100 crore, an increase of borrowing powers from Rs 250 crore to Rs 1,000 crore, issuance of non-convertible debentures, bonds or other instruments up to Rs 1,000 crore and increase of investment limits from Rs 750 crore to Rs 1,000 crore.

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Veranda Learning Solutions got listed in the stock market earlier this month. The share was listed at Rs 157, including a premium of 14.60% to the initial public offering (IPO) price on April 11, 2022. The IPO was subscribed 3.53 times. The issue opened for bidding on March 29, 2022, and it closed on March 31, 2022. The price band for the IPO was fixed at Rs 130-137 per share.