Jaro Education to Launch ₹450 Crore IPO on September 23

New Delhi, September 18 – Jaro Institute of Technology Management and Research IPO, better known as Jaro Education, on Friday announced its Initial Public Offering (IPO) of ₹450 crore. The public issue will open for subscription on September 23 and close on September 25.

IPO Structure and Price Band

The company has set the price band for the IPO at ₹846 to ₹890 per share. The overall IPO proceeds are split into a new equity issue and an Offer for Sale (OFS) to help the offering structure deliver proceeds via both mechanisms. The proceeds from the overall size will consist of ₹170 crore from the newly issued shares and ₹280 crore by way of the OFS. This two-pronged approach provides financing to the company for growth initiatives and liquidity to its promoter.

Utilisation of Funds

Jaro Education has specified the use of proceeds from the new issue. Out of the total ₹81 crore, a significant portion will be allocated to marketing, branding, and ad campaigns aimed at enhancing its visibility in a highly competitive space. In addition, ₹45 crore will be utilised for prepayment or scheduled repayment of the company’s borrowings, thus improving the balance sheet. The balance of the proceeds will be used for general corporate purposes, providing additional liquidity for future needs.

Partnerships and Academic Portfolio

Jaro Education’s power comes from its partnerships with top academic institutions. The education provider is associated with 36 institutions, such as the IITs, IIMs, Swiss School of Management, and Rotman School of Management at the University of Toronto, among others. Jaro’s course offerings are similarly extensive, providing 268 programs across multiple domains to professionals and students aspiring for advanced education.

Key Managers of the Issue

Nuvama Wealth Management, Motilal Oswal Investment Advisors, and Systematix Corporate Services will oversee the issuance of shares for the IPO. They will work closely with the company to provide guidance and support throughout the process. Bigshare Services has been named as the registrar of the IPO. They will be responsible for managing the investor application process and share allotments.

Objectives of the Issue

The key goals of Jaro Education’s IPO are to improve its market presence, reduce debt, and fund corporate objectives. The company will spend some of the proceeds on advertising and brand awareness to help attract a broader audience. At the same time, repaying debt improves the company’s financial position, while the allocation to corporate purposes will provide an opportunity for the company to pursue new opportunities and improve operations.

Company’s Background and Growth Trajectory

Founded in 2009 by Sanjay Namdeo Salunkhe, Jaro Education has established its credentials by providing degree and certification programs in collaboration with high-quality institutions. Over time, it has expanded its presence across India with 22 offices-cum-learning centres in major cities to facilitate offline learning, and it also has 17 immersive technology studios located at IIM campuses to support high-quality teaching and learning.

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