Jaro Institute Of Technology shares list exactly at IPO price, but fall 10% soon after

Shares of Jaro Institute Of Technology Management and Research made their debut on the stock exchanges on Tuesday, September 30, after a healthy response to its three-day Initial Public Offer.

The stock began trading at its IPO price of ₹980 itself, but fell 10% soon after.

Jaro Institute recently sold shares in a ₹450 crore IPO, which comprised of a ₹170 crore fresh issue of shares, and the remaining ₹280 crore Offer For Sale (OFS) component.

Price band of the IPO was fixed between ₹846 to ₹890 per share.

Jaro Institute's three-day IPO was subscribed 22 times the number of shares on offer, according to NSE data.

Jaro Institute's IPO subscription was led by both institutional and non-institutional investors as their portions were subscribed 35 times the total number of shares reserved for their respective categories.

The portion reserved for retail investors also saw demand of 8.7 times the total number of shares on offer.

Founded in 2009, Jaro Institute is an edtech company providing higher education and executive upskilling programs. It is also in partnership with top universities of the country, including premier institutions like the IITs and the IIMs.

Out of the proceeds that will be raised through the fresh issue, ₹81 crore will be used for marketing, brand building and advertising activity, while ₹45 crore will be used for prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the company. The rest, will be for general corporate purposes.

Reports from the unlisted market indicate that shares of Jaro Institute are trading at a Grey Market Premium (GMP) of ₹43 per share. However, it must be noted that these are only speculative rates and the actual listing price could be different compared to the GMP.