Jaro Education IPO Opens Today: Key Details, Financials, Anchor Allocation, Strengths and Risks

Mumbai, September 23, 2025: Jaro Institute of Technology Management and Research Limited (Jaro Education) opened its initial public issue for subscription today. The IPO will remain open until September 25, 2025, with listing on September 30, 2025.

Based out of Mumbai and established in 2009, Jaro Education is a top Indian edtech player in the areas of executive upskilling and online higher education. It partners with premier Indian and global institutions to provide programs in management, technology, and analytics.

IPO Key Details

Jaro Education will open its Initial Public Offering (IPO) on September 23- 25, 2025, and shares are to be listed on the stock exchanges on September 30, 2025. Jaro Education IPO is being offered in the price band of ₹846 to ₹890 per share, with a lot size of 16 shares, i.e., ₹14,240 at the top price band.

The size of the issue is fixed at ₹450 crore, out of which a new issue of ₹170 crore will be raised by the company to meet its growth strategy, and the balance ₹280 crore will be sold by way of an Offer for Sale (OFS) by promoter Sanjay Namdeo Salunkhe. The IPO will have both retail and institutional participation, offering a chance to be part of the company’s growth story.

Net proceeds of the new issue will be employed towards marketing & brand building (₹81 crore), repayment of borrowings (₹45 crore), and general corporate purposes.

Financial Performance

Jaro Education’s financial performance was robust in FY25, propelled by consistent expansion in revenue and profitability parameters. The company’s overall income increased to ₹2,540.2 million in FY25 from ₹2,025.7 million in FY24 and ₹1,245.9 million in FY23, indicating consistent business growth.

Net profit in FY25 jumped to ₹516.7 million from ₹379.7 million in FY24 and ₹116.5 million in FY23, reflecting a substantial improvement in profitability. As a result, earnings per share (EPS) at ₹25.53 in FY25 were higher than ₹18.90 in FY24 and ₹5.78 in FY23, signaling improved shareholder value.

The net worth of the company improved to ₹1,715.5 million in FY25 from ₹1,174.3 million in FY24 and ₹835.7 million in FY23, reflecting better financial stability. Borrowings have risen to ₹511.1 million in FY25, versus ₹248.5 million in FY24, while still lower than FY23 levels of ₹377.7 million.

The business has registered solid revenue growth with a 3-year CAGR of ~43%, whereas profits have grown close to 4.4x since FY23.

Anchor Investor Allocation

On 22nd September 2025, the company issued 15,16,853 equity shares to anchor investors at ₹890 per share, aggregating ₹134.99 crore.

Key Allocations

As part of its anchor book-building, Jaro Education had distributed shares among a number of prominent investors. 360 ONE Equity Opportunity was given 1,68,528 shares representing 11.11%, worth ₹14.99 crore. WhiteOak Capital Flexi Cap was given 1,02,032 shares representing 6.73% of the anchor component, worth ₹9.08 crore.

Société Générale ODI was allotted 1,46,048 shares (9.63%), or 9.63% of the anchor allocation, at ₹12.99 crore, while LC Pharos Multi Strategy was allotted 1,23,584 shares (8.15%), worth ₹10.99 crore. Singularity Equity Fund 1 got 1,12,352 shares (7.41%), totaling ₹9.99 crore, and Subhkam Ventures Pvt Ltd was allotted 1,06,736 shares (7.04%), worth ₹9.49 crore.

Further, overseas institutional investors Citi Group Global Markets (Mauritius) and Nomura Singapore were both granted 56,192 shares, equivalent to 3.70% of the anchor size, with an individual size of ₹5.00 crore. These allotments indicate robust institutional demand prior to the IPO.

Total Anchor Book: 15.16 lakh shares; ₹134.99 crore

Key Strengths

• Strong Partnerships: Partners with 7 IIMs, 6 IITs, and foreign universities such as the University of Toronto’s Rotman School of Management.
• Diverse Program Portfolio: Serves 250+ programs in management, technology, and analytics.
• Strong Financial Growth: PAT increased from ₹116.5 mn in FY23 to ₹516.7 mn in FY25, demonstrating a scalable business model.
• High Revenue Predictability: Supported by long-term institutional collaborations, particularly with Tier-I institutions.

Key Risks

• Revenue Concentration: Revenue from the Top 5 institutions accounted for 62.4% of FY25 revenue.
• Geographic Dependence: Western India contributed 73% of FY25 revenue.
• Past Negative Cash Flows: Negative operating cash flows during FY25 (₹234.6 mn) and FY24 (₹169.7 mn).
• Third-Party LMS Reliance: High reliance on third-party learning management systems for the delivery of courses.
• Ongoing Legal Cases: Outstanding civil proceedings worth ₹97.25 mn and tax disputes.

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