Stock Report

Veranda XL Learning Solutions Pvt Ltd updates on acquisition of JK SHAH

Posted On : 2022-11-01 17:15:16( TIMEZONE : IST )

Veranda XL Learning Solutions Private Limited ("VXL"), a Wholly Owned Subsidiary of Veranda Learning Solutions Limited ("Company"), had entered into definitive documents for the acquisition of equity shares of J.K Shah Education Private Limited ("JKSHAH"). Pursuant to the said documentation, VXL has now acquired 61.7% of the issued and paid-up share capital of JK SHAH.

In relation to the said acquisition, the Company has also entered into a shareholders' agreement dated October 12, 2022 with Mr. Jitendra Kantilal Shah, VXL and JK SHAH, the provisions of which are effective on and from October 31, 2022 upon consummation of the acquisition.

The Company, along with VXL has an obligation to acquire shares of JKSHAH from Mr. Jitendra Kantilal Shah upon occurrence of certain specified events (including in case of an event of default, change of control).

Mr. Jitendra Kantilal Shah has certain rights in JKSHAH as a minority shareholder.

The agreement also provides for certain rights and obligations to be exercised by the Company in the event VXL merges with JK SHAH.

In the event the Company or VXL are unable to acquire the shares held by Mr. Jitendra Kantilal Shah (or his permitted transferees) in JK SHAH in the manner prescribed under the Shareholders' Agreement, Mr. Jitendra Kantilal Shah has a right to require the Company to issue shares to Mr. Jitendra Kantilal Shah and his permitted transferees in lieu of transfer of shares held by Mr. Jitendra Kantilal Shah and his permitted transferees in JK SHAH (to be effected as a swap transaction).

Shares of Veranda Learning Solutions Limited was last trading in BSE at Rs. 322.05 as compared to the previous close of Rs. 322.10. The total number of shares traded during the day was 7267 in over 423 trades.

The stock hit an intraday high of Rs. 328.95 and intraday low of 321.45. The net turnover during the day was Rs. 2356873.00.