Jaro Education IPO Sees 40% Subscription on Day One, 15% Grey Market Premium
Jaro Institute of Technology Management & Research launched its Rs 450.00-crore IPO, priced between Rs 846.00-890.00 per share. The offering achieved a 40% subscription by midday on its opening day. Non-institutional investors fully subscribed their portion at 1.18 times, while retail investors booked 28% of their allocated shares. The IPO comprises a fresh issue of Rs 170.00 crore and an offer for sale of Rs 280.00 crore. The stock is trading at a 15% premium in the grey market. Jaro Education reported significant financial growth, with revenue projected to increase from Rs 122.00 crore in FY23 to Rs 252.00 crore in FY25.
*this image is generated using AI for illustrative purposes only.
Jaro Institute of Technology Management & Research launched its Initial Public Offering (IPO) on the market, with investor interest evident from the first day's subscription rates. The Rs 450.00-crore IPO, priced in the band of Rs 846.00-890.00 per share, achieved a 40% subscription by midday on its opening day.
IPO Details
The IPO comprises a fresh issue of Rs 170.00 crore and an offer for sale of Rs 280.00 crore. The issue is set to close on September 25, with the listing scheduled for September 30.
Subscription Breakdown
- Non-institutional investors showed strong interest, fully subscribing their portion at 1.18 times.
- Retail investors booked 28% of their allocated shares.
- As of midday, no bids were received from institutional investors.
Grey Market Performance
The stock is currently trading at a 15% premium in the grey market, suggesting a potential listing price of Rs 1,020.00.
Company Financials
Jaro Education, an online education company, has reported significant growth:
| Fiscal Year | Revenue (Rs Crore) | Adjusted PAT (Rs Crore) | EBITDA Margin | ROE |
|---|---|---|---|---|
| FY23 | 122.00 | 11.00 | 19% | - |
| FY25 | 252.00 | 52.00 | 32% | 30% |
The company has shown substantial improvement in its financial metrics, with revenue more than doubling and adjusted PAT increasing nearly five-fold between FY23 and FY25.
Use of IPO Proceeds
The funds raised through the IPO will be utilized for:
- Marketing initiatives
- Debt repayment
- General corporate purposes
Investors and market watchers will be keenly observing the subscription trends over the coming days as the IPO progresses towards its closing date.
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