Jaro Institute of Technology Management and Research made a weak listing today, with shares ending at 15.4% discount to the IPO price. The stock closed at Rs 753 on NSE on the market debut, against the issue price of Rs 890 per share.
Earlier in the day, Jaro Institute shares opened for trade at nearly 10% discount. Jaro Institute's listing followed the strong response to its Rs 450-crore IPO, which was subscribed 22 times.
IPO subscription details
The three-day IPO, open between September 23 and September 25, saw strong demand across categories. Institutional and non-institutional investors led the subscription, with their portions booked 35 times each. The retail investor segment also recorded healthy demand, with subscriptions at 8.7 times. In total, the issue comprised a Rs 170 crore fresh issue and a Rs 280 crore offer-for-sale.
Grey market signals
Ahead of the listing, shares of Jaro Institute were trading at a grey market premium of about Rs 43 per share, suggesting the potential for modest listing gains. However, these grey market trends are speculative and may not always translate into actual performance on debut.
Company overview and use of proceeds
Founded in 2009, Jaro Institute is an edtech company specialising in higher education and executive upskilling programmes. It partners with leading Indian universities, including IITs and IIMs, to deliver its offerings.
From the proceeds of the fresh issue, Rs 81 crore will be directed towards marketing, brand building, and advertising activities. A further Rs 45 crore will go towards prepayment or scheduled repayment of certain outstanding borrowings, with the remainder allocated for general corporate purposes.
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