Radiant Cash Management Services and Veranda Learning Solutions will launch IPOs soon
Cash logistics entity Radiant Cash Management Services and online education platform Veranda Learning Solutions have received Securities and Exchange Board of India's (SEBI) nod to launch their initial public offers (IPOs).
The two companies had filed their preliminary IPO papers with the markets regulator between October and November 2021 and received the observation letter during January 10-11, SEBI said in a notification.
Issuance of observation letter means clearance from SEBI to a company to launch its IPO.
According to draft papers filed by the companies, Radiant Cash Management Services' IPO comprises fresh issue of shares worth up to Rs 60 crore and an offer-for-sale (OFS) of 3 crore shares by promoter David Devasahayam and private equity firm Ascent Capital Advisors India.
In 2015, Ascent Capital had acquired a 37.2 per cent stake in the company.
Out of the fresh issue proceeds, Rs 20 crore will be used for funding working capital requirements and Rs 23.92 crore for capital expenditure requirements for purchase of specially fabricated armoured vans.
The Chennai-based company is an integrated cash logistics player with a leading presence in the retail cash management segment.
Meanwhile, Veranda Learning Solutions Limited is looking to raise Rs 200 crore through an initial share-sale, according to its draft red herring prospectus (DRHP).
The IPO is the primary issuance of equity shares.
Proceeds of the public issue will be utilized towards repayment or pre-payment of loan, retirement of acquisition consideration of Edureka and growth initiatives.
Veranda is a comprehensive 360-degree online education platform. It is engaged in the business of offering diversified and integrated learning solutions in online, offline hybrid and offline blended formats to students, aspirants, and graduates professionals and corporate employees.
The equity shares of both companies will be listed on Bombay stock (BSE) and National stock exchange (NSE).