Veranda Learning Solutions Limited has announced a significant strategic move in the education sector, approving the divestment of its entire vocational segment to SNVA Edutech Limited. The deal, valued at INR 390.11 crores, will be executed through a share swap arrangement, resulting in Veranda acquiring a 50% equity stake in SNVA Edutech.

Key Details of the Transaction

• Divestment Scope: The transaction involves the transfer of three subsidiaries:

  1. Brain4ce Education Solutions Private Limited
  2. Veranda Management Learning Solutions Private Limited
  3. Six Phrase Edutech Private Limited

• Deal Structure: In exchange for these subsidiaries, SNVA Edutech will allot equity shares to Veranda Learning Solutions Limited and its subsidiary, Veranda Administrative Learning Solutions Private Limited.

• Timeline: The deal is expected to complete by October 31, 2025, subject to shareholder approval at the upcoming Annual General Meeting.

Strategic Implications

This move is part of Veranda's 'Veranda 2.0' strategy, aimed at sharpening business priorities and focusing resources on high-growth verticals. The combined entity will integrate vocational, skilling, and higher education operations across multiple countries, including India, USA, UK, France, Italy, Malta, Switzerland, and Singapore.

About SNVA Edutech

• Incorporation: Founded on November 3, 2009
• Business Focus: Provides education services, training, and business support services
• Financial Highlights:
  • FY2025 Turnover: INR 3,326.76 lakhs
  • FY2025 Assets: INR 2,079.27 lakhs

Additional Board Approvals

1. Loan Conversion: The board has authorized the conversion of outstanding loans into equity shares in Brain4ce Education Solutions Private Limited.

   • Number of shares involved: 5,99,718
   • Expected completion: By September 29, 2025

2. AGM Notice Addendum: An addendum to the Notice of the Annual General Meeting dated September 06, 2025, has been approved to incorporate additional details pertaining to Item No. 6.

Financial Impact

The divestment involves significant portions of Veranda's business:

This strategic realignment is expected to allow the divested businesses, along with SNVA, to independently unlock value as large, profitable, and market-leading entities. It also positions Veranda to participate meaningfully in SNVA's future growth while unlocking value from its existing vocational education assets.

The move creates a unique global education platform, combining Veranda's strong Indian market presence and domestic capabilities with SNVA's international footprint, setting it apart from competitors in the education sector.

Veranda Learning Solutions Limited has announced plans to demerge its commerce education vertical into a separate listed entity, J.K. Shah Commerce Education Limited (JKSC). This strategic move aims to unlock value and drive focused growth in both the commerce and non-commerce segments of the company.

Demerger Details

The demerger will follow a mirror shareholding structure, with existing Veranda shareholders receiving one share of JKSC for every share held in Veranda. The process is expected to take 7-8 months, pending regulatory approvals.

Financial Outlook

For FY2026, the company projects:

The commerce vertical anticipates 22% revenue growth for FY2026, with student numbers expected to increase from 1.7 lakh to 2 lakh.

Growth Drivers

Suresh Kalpathi, Chairman and Executive Director, highlighted two key drivers for the commerce education sector:

1. Domestic demand due to India's strengthening economy
2. Global Capability Centers (GCCs) setting up offshore financial services in India

The industry is projected to grow at 35-40% annually for the next 5-7 years, with JKSC aiming to match or exceed this growth rate.

Expansion Plans

JKSC currently operates across 200 physical locations in India. The company plans to expand its presence, particularly in Tier 2 and Tier 3 towns, by establishing J.K. Shah College of Commerce as a premium brand.

Debt Structure

Post-demerger, JKSC will be debt-free, while Veranda will retain INR 125.00 crores of debt at a 17.25% interest rate. The company plans to refinance this debt to a lower cost in the coming months.

Market Position

Veranda Learning Solutions, through its various brands including J.K. Shah Classes, BB Virtuals, Tapasya, Logic, and Navkar, claims market leadership in the commerce education sector. The company produced around 150 rank holders in recent exams, emphasizing its focus on quality education.

Future Outlook

Management expects the commerce business to grow at 35-40% annually over the next 5-7 years. The company is also exploring growth opportunities in its non-commerce verticals, including vocational training, K-12 education, and government test preparation.

Suresh Kalpathi stated, "We are at an exciting inflection point. This demerger is poised to drive enhanced operational and financial clarity, leading to an independent, market-driven valuation for our commerce vertical."

As Veranda Learning Solutions embarks on this strategic transition, the company aims to cement its position as a leader in the education sector while creating value for its shareholders.