Education Power Shift: Veranda Spins Off Commerce Wing with Share Swap Surprise

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Veranda Learning Solutions Limited has taken a significant strategic step by approving the demerger of its Commerce education vertical, creating a new independent entity named J.K. Shah Commerce Education Limited (JKSC). This move aligns with the company’s broader Veranda 2.0 vision, aiming to unlock long-term value and drive targeted growth within the highly competitive commerce test preparation sector. Existing shareholders of Veranda will receive one share of JKSC for each Veranda share they hold, offering direct exposure to the blossoming commerce education platform.

Key Developments and Highlights

Demerger Structure and Shareholder Impact
The demerger will be executed through a mirror shareholding structure, where each Veranda shareholder receives one JKSC share per Veranda share owned.
The process is expected to take around 7-12 months with necessary regulatory approvals including NCLT clearance.
Shareholders gain exposure to a focused commerce test prep entity offering CA, CS, CMA, and ACCA courses.

Business Realignment and Portfolio Unification

JKSC will consolidate Veranda’s top commerce brands including J.K. Shah Classes, BB Virtuals, Navkar Digital Institute, Tapasya College of Commerce, and Logic School of Management into a single entity.

The vertical caters to more than 200,000 students currently and has a strong legacy of mentoring hundreds of CA rankers.

The commerce business will operate debt-free post demerger, with Veranda retaining some debt separately.

Financial Projections and Growth Outlook

JKSC aims for robust revenue growth targeting more than ₹1,000 crore by FY2030, projecting approximately 31% CAGR over the next five years.
FY2026 estimates foresee the Commerce vertical contributing INR 135-140 crore EBITDA to consolidated figures, supporting Veranda’s overall target of INR 180 crore EBITDA.
Focus on expanding digital and hybrid learning models to increase reach, particularly in Tier 2 and Tier 3 cities, while also tapping international markets via courses like CPA and CFA.
Strategic Rationale and Leadership
The demerger enables sharper strategic focus, operational agility, and independent capital market access for the commerce vertical.
Veranda Learning has acquired the remaining equity stake to make Veranda XL a wholly owned subsidiary, simplifying the group’s structure.
Prof. J.K. Shah will lead JKSC as Chairman and CEO, ensuring continuity and long-term vision alignment, with an economic interest retained in the new entity.

This strategic decisiveness by Veranda Learning Solutions will likely reshape the landscape of commerce education in India by creating a dedicated powerhouse primed to accelerate growth and innovation in the sector while providing shareholders with focused investment returns. The move distinctly positions JKSC as a future-facing commerce education leader

Source: The Hindu Businessline