Jaro Institute IPO Sees Muted Response on Day One, NII Segment Shows Promise
Jaro Institute of Technology Management And Research's IPO was subscribed 0.38 times overall on its first day. Non-Institutional Investors showed more interest with 1.16 times subscription, while Retail Investors subscribed 0.26 times. The IPO aims to raise Rs 450 crore with a price band of Rs 840-890 per share. The grey market premium suggests a potential listing price of Rs 1,020. The company reported strong financial growth with a 36.1% increase in Profit After Tax for FY25.
*this image is generated using AI for illustrative purposes only.
The initial public offering (IPO) of Jaro Institute of Technology Management And Research received a lukewarm response on its first day of subscription, with investors showing cautious interest in the edtech company's market debut.
Subscription Details
The IPO, which aims to raise Rs 450 crore, was subscribed 0.38 times overall on the opening day. Here's a breakdown of the subscription rates across different investor categories:
- Non-Institutional Investors (NIIs): 1.16 times
- Retail Investors: 0.26 times
IPO Structure and Pricing
The book-built issue comprises:
- Fresh issue: 19 lakh shares (Rs 170 crore)
- Offer-for-sale: 31 lakh shares (Rs 280 crore)
Price Band: Rs 840 - Rs 890 per share Face Value: Rs 10 per share Lot Size: 16 shares
Grey Market Premium
The grey market is showing a premium of Rs 130, indicating a potential listing price of Rs 1,020 per share. However, it's important to note that grey market premiums are unofficial and subject to change.
Company Performance
Jaro Institute, founded in 2009, has shown strong financial growth:
| Metric | FY24 | FY25 | Growth |
|---|---|---|---|
| Profit After Tax (Rs crore) | 37.97 | 51.67 | 36.1% |
| Total Income (Rs crore) | 202.57 | 254.02 | 25.4% |
Utilization of Funds
The company plans to use the proceeds from the IPO for:
- Marketing initiatives
- Debt repayment
- General corporate purposes
Investor Outlook
The muted first-day response, particularly from retail investors, suggests a cautious approach to the IPO. However, the stronger showing in the NII segment could indicate greater confidence among more seasoned investors.
As the subscription window remains open, it will be interesting to see if investor sentiment shifts in the coming days, especially given the company's recent financial performance and the current trends in the edtech sector.
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