The shares of Jaro Institute are already commanding a premium of ₹122 or 14% in the grey market, an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day.
Most investors track the grey market premium (GMP) to get an idea of the listing price.
What analysts say
Brokerage firm SBI Securities recommended investors to subscribe to the issue at the cut-off price for the long-term.
The brokerage said that Jaro Institute is among the leaders in the online education offering a total of 268 degree and certificate courses. The company is expected to capitalise on the projected 1.9x jump in the Indian online education and upskilling market by FY28.
Anand Rathi believes the IPO is fully priced and recommended a 'subscribe-long term' rating to the IPO.
Jaro Institute, the brokerage said, holds a leading position in the online higher education and professional upskilling sector, supported by a strong brand reputation and a wide pan-India presence. The company provides comprehensive solutions that cater to both Partner Institutions and Learners, enabling academic and career growth.
"With a consistent track record of building long-term and resilient client relationships across industries, it ensures high revenue visibility and stability. Its portfolio reflects a proven ability to design and deliver high-quality, diverse course offerings tailored to evolving market needs. By leveraging advanced technology and digital platforms, Jaro enhances the overall experience for its clients while driving scalability and expansion," the note said.
Jaro Institute IPO structure
The IPO includes a fresh issue of ₹170 crore and an offer-for-sale of ₹280 crore.
Considering the upper end of the price band, the IPO will result in a post-issue market capitalisation of about ₹1,972 crore.
Jaro Institute IPO anchor book
The company has raised ₹135 crore via its anchor book on September 22. As many as 15 institutional investors participated in the anchor book including asset management companies like Whiteoak Capital, and ITI Mutual Fund, which invested ₹21.49 crore for 2.41 lakh shares in Jaro Education.
Citi Group, Nomura Singapore, Abbakus Asset Manager, Singularity Equity Fund, 360 ONE, and Societe Generale also invested in the company through anchor book.
Jaro Institute IPO objective
The company will spend ₹81 crore of fresh issue proceeds for marketing, brand building and advertising activities. Further, ₹45 crore will be used for repayment of certain outstanding borrowings, and the remaining amount for general corporate purposes.
Company overview
Jaro Institute is an online higher education and upskilling platform company which markets and facilitates delivery of a diverse range of degree programs including D.B.A, MBA, M.Com., M.A., PGDM, M.C.A., M.Sc., B.Com., BCA, as well as cross- disciplinary certification courses in partnership with various universities and institutions.
It has partnered with 36 Partner Institutions including 16 Tier I universities & institutions (including 7 IIMs & 7 IITs) and 15 Tier II universities & institutions. The company has a pan-India presence with 22 offices cum learning centres and 17 immersive studios across India as of March 2025.
Revenue surged from ₹122 crore in FY23 to ₹252 crore in FY25, a CAGR of 44%. Adjusted PAT jumped from ₹11 crore to ₹52 crore in the same period, a CAGR of 113%. EBITDA margins improved from 19% to 32%, underscoring operating leverage.
Book running lead managers
Nuvama Wealth Management, Motilal Oswal Investment Advisors, and Systematix Corporate Services, are the book running lead managers, while Bigshare Services is the registrar of the issue.
The allotment for the Jaro Institute IPO is expected to be finalised on September 26, and the company's shares will list on BSE and NSE with a tentative listing date fixed as September 30.
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