Jaro Education IPO subscribed 87% on Day 1; should you apply? Check GMP and other key details

Jaro Education IPO subscribed 87% on Day 1; should you apply? Check GMP and other key details

The initial public offer of Jaro Institute of Technology Management and Research (Jaro Education) got subscribed 87% on the first day of bidding on September 23.

The IPO received bids for 32,41,168 shares against 37,23,404 shares on offer, as per NSE data.

The categories for Qualified Institutional Buyers (QIBs) got 47% subscription while the non-institutional investor portion got 182% subscription. Retail Individual Investors (RIIs) quota got subscribed 69%.

Jaro Institute on September 22 said it mopped up Rs 135 crore from anchor investors ahead of its initial public offering (IPO).

According to a circular uploaded on BSE’s website, Citigroup Global Markets Mauritius, Nomura Singapore, Societe Generale, 360 ONE fund, WhiteOak Capital Mutual Fund (MF) and ITI MF have participated in the anchor round.

Jaro Education IPO Details

The company’s IPO comprises a fresh issue of shares worth Rs 170 crore and an Offer for Sale (OFS) of shares valued at Rs 280 crore by promoter Sanjay Namdeo Salunkhe.

Of the fresh issuance, Rs 81 crore has been earmarked for marketing, brand building and advertising activities, Rs 45 crore for payment of debt and the rest for general corporate purposes.

The issue, with a price band of Rs 846 to Rs 890 per share, will be available for subscription during September 23-25.

Founded in 2009 by Salunkhe, Jaro Education offers degree programmes and certification programmes in collaboration with its partner institutions.

As of March 2025, it has over 22 offices-cum-learning centres across major cities for offline learning, apart from 17 immersive tech studio set-ups in the campuses of various IIMs, and caters to a total of 36 partner institutions such as IITs, IIMs and premier global institutions like Swiss School of Management and Rotman School of Management, University of Toronto. It offers 268 course offerings and programmes in diverse domains.

Jaro Education IPO: Should you apply?

SBI Securities and Deven Choksey Research recommended ‘Subscribe’ on Jaro Institute of Technology Management & Research Ltd IPO.

"At the upper price band of Rs 890, the issue is valued at a P/E multiple of 38.2x on post-issue capital. Jaro Institute is among the leaders in the online education offering a total of 268 degree and certificate courses. The company has delivered strong Revenue/EBITDA/Adj. PAT CAGR of
44%/88%/113% to Rs 252 cr/ Rs 82 cr/Rs 52 cr respectively between FY23-FY25 period, showcasing its financial strength. Further, Jaro Institute is expected to capitalise on the projected 1.9x jump in the Indian online education and upskilling market by FY28. We recommend investors to SUBSCRIBE to the issue at the cut-off price for the long-term," said SBI Securities.

Partner adoption risk, revenue concentration risk, geographic concentration and seasonality risk are the risk factors, the brokerage said.

"Jaro’s Initial issue is priced at 38.2x FY25 P/E, while most of its privately held peers, were not profitable for the most recent years. Although, the issue being priced at ~38.0x, we believe the stock is attractively priced, driven by its strong revenue growth, healthy margin and return profile. We expect the Company to perform well in terms of profitability, with increase in enrolments. We assign a “SUBSCRIBE” rating to the issue," said Deven Choksey Research.

Jaro Education GMP

According to InvestorGain, the Grey Market Potential (GMP) of Jaro Education stood at Rs 123 as of September 23, 5 pm. The estimated listing price is expected to be Rs 1,013 based on the upper price band of Rs 890. The expected percentage gain per share is 13.82%.