Jaro Education file draft papers to raise Rs 570 crore via IPO

Jaro Education IPO

The Mumbai-based Jaro Institute of Technology Management and Research, which operates in the online higher education and upskilling space, has filed preliminary papers with the capital markets regulator SEBI to raise Rs 570 crore through an initial public offering (IPO)."

The IPO consists of a fresh issuance of equity shares worth Rs 170 crore and an offer-for-sale of shares worth Rs 400 crore by promoter Sanjay Namdeo Salunkhe.

Promoters currently hold an 85.03 percent stake in the company, while the remaining 14.97 percent is held by 473 shareholders.

The company, which provides degree programs and certification courses in collaboration with several partner institutions, may consider a pre-IPO placement of shares worth Rs 34 crore before filing the red herring prospectus with the Registrar of Companies. If successful, the amount raised via the pre-IPO placement will be deducted from the fresh issue.

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Jaro Education plans to allocate Rs 81 crore from the net proceeds of the fresh issue for marketing and brand building, Rs 48 crore for debt repayment, and the remainder for general corporate purposes. The company appears to be aiming to become debt-free, as its total outstanding borrowings stood at Rs 48.7 crore as of September 23, 2024.

With a pan-India presence that includes over 22 offices-cum-learning centres in major cities for offline learning, Jaro Institute collaborates with 34 partner institutions, including IITs, IIMs, and premier global institutions such as the Swiss School of Management, the Rotman School of Management (University of Toronto), and leading corporations.

According to the draft papers filed on September 30, there are no listed peers in India or globally operating in a similar business.

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The company has demonstrated strong financial performance in recent years, with net profit for the fiscal year ending March 2024 growing by 233 percent year-on-year to Rs 38 crore, driven by robust operating performance. Revenue for fiscal 2024 increased by 63 percent, reaching Rs 199 crore compared to Rs 122.1 crore in the previous year.

The merchant bankers appointed to handle the IPO are Nuvama Wealth Management, Motilal Oswal Investment Advisors, and Systematix Corporate Services.