Jaro Education files draft papers to raise Rs 570 crore via IPO

Jaro Institute has a pan-India presence with over 22 offices-cum-learning centers in major cities for offline learning. Jaro Institute collaborates with 34 partner institutions, including IITs and IIMs, as well as prestigious international institutions like the Swiss School of Management, the Rotman School of Management (University of Toronto), and top corporations. There are no listed peers engaged in a similar business in India or anywhere else in the world, according to the draft papers released on September 30.

Jaro Institute of Technology Management and Research IPO:

The Mumbai-based Jaro Institute of Technology Management and Research, which provides online higher education and upskilling, has submitted preliminary documents to SEBI, the capital markets regulator. The institute intends to raise Rs 570 crore through an initial public offering (IPO). 

The IPO consists of a fresh issue of equity shares valued at Rs 170 crore and an OFS of shares valued at Rs 400 crore by promoter Sanjay Namdeo Salunkhe. Currently, 473 shareholders own 14.97% of the business, with the promoters owning 85.03%. The merchant bankers tasked with overseeing the initial public offering (IPO) are Nuvama Wealth Management, Motilal Oswal Investment Advisors, and Systematix Corporate Services.

The company, which provides certification and degree programs in collaboration with several partner institutions, may consider a pre-IPO placement of shares valued at Rs 34 crore before filing the red herring prospectus with the Registrar of Companies. The funds raised will be deducted from the new issue in the event that the pre-IPO placement is successful.

IPO fund distribution by Jaro Education:

Jaro Education intends to use the net proceeds of the new issue to fund marketing and brand development, pay off debt with Rs 48 crore, and use the remaining funds for general corporate purposes. The company’s total outstanding borrowings as of September 23, 2024, stood at Rs 48.7 crore, suggesting that it is working toward becoming debt-free.

Jaro Education financial performance:

The company has shown impressive financial performance in recent years. Strong operating performance helped net profit for the fiscal year that ended in March 2024 rise by 233% year over year to Rs 38 crore. In comparison to the previous year, when revenue was Rs 122.1 crore, it increased by 63 percent to Rs 199 crore for the fiscal year 2024.

Conclusion: In order to pay off debt, Jaro Education is submitting an IPO application. A portion of the proceeds will go toward marketing and branding, with the remaining portion being used for general corporate purposes to support the company’s continued expansion.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.