Jaro Institute of Technology IPO day 1: GMP, review, subscription status, other details. Apply or not?

Jaro Institute of Technology IPO: The initial public offering (IPO) of Jaro Institute of Technology Management & Research will open for subscription on September 23 and close on September 25. Through this issue, the company plans to raise ₹450 crore, with its shares set to list on both NSE and BSE.

Jaro Institute of Technology IPO: GMP trends

The Jaro Institute of Technology IPO GMP stands at ₹122. The latest GMP indicates that the issue may list at ₹1,012 a 13.71% premium to the issue price of ₹890. However, the GMP is an unofficial trading platform, and the actual listing price may see a significant difference from the current trends.

Jaro Institute IPO Details

Jaro Institute of Technology’s ₹450 crore public issue will comprise both a fresh equity sale and an offer for sale (OFS). The fresh issue will raise ₹170 crore through the issuance of 0.19 crore new shares, while the OFS will involve the sale of 0.31 crore shares worth ₹280 crore.

As per the draft red herring prospectus (DRHP), promoter Sanjay Namdeo Salunkhe, who owns 78.2 percent of the company, plans to divest shares worth ₹400 crore via the OFS.

The price band for the issue has been fixed at ₹846–890 per share, with a lot size of 16 shares. This sets the minimum retail investment at ₹14,240 for one lot. Proceeds from the OFS will go to the selling shareholders, whereas the fresh issue funds will be channelled towards debt repayment, marketing, brand-building initiatives, advertising, as well as covering IPO-related expenses and general corporate needs.

The tentative IPO timeline indicates that allotment will be finalised on September 26, 2025, followed by refunds and credit of shares to Demat accounts on September 29. Listing on both BSE and NSE is scheduled for September 30, 2025.

Nuvama Wealth Management, Motilal Oswal Investment Advisors, and Systematix Corporate Services are serving as the book-running lead managers, with Bigshare Services handling registrar responsibilities.

Apply or not?

Anand Rathi Securities has assigned a ‘Subscribe for Long-term’ rating to the Jaro Institute of Technology IPO. The brokerage noted that the company enjoys a leading position in the online higher education and professional upskilling segment, backed by a strong brand reputation and a wide presence across India.

“At the upper price band, the company is valued at a P/E of 38.1x to its FY25 earnings, with an EV/EBITDA of 24.8x. The IPO is fully priced in,” Anand Rathi said in its report. It added that Jaro’s portfolio highlights a proven ability to design and deliver high-quality, diverse course offerings that match evolving market needs. “By leveraging advanced technology and digital platforms, Jaro enhances the overall experience for its clients while driving scalability and expansion,” the brokerage stated.

At the upper end of the price band, the IPO is valued at a P/E multiple of 38.2x FY25 earnings. While the valuations appear steep, analysts believe the company’s leadership in a rapidly growing sector could justify the premium. India’s online higher education and upskilling industry is expected to nearly double by FY28, offering significant growth opportunities.

SBI Securities has also recommended a ‘Subscribe for Long-term’ stance, citing Jaro’s robust growth trajectory, strong market positioning, and scalable business model.

About the firm

Jaro Education, established in 2009 by Sanjay Salunkhe, who also serves as its chairman and managing director, offers technology-driven degree programs and certification courses in partnership with leading institutions. The institute caters to a diverse audience, ranging from students to senior corporate professionals.

As of March 31, 2024, Jaro Education operated more than 22 offices and learning centres across major Indian cities to support offline learning, along with 15 tech-enabled studio setups located on IIM campuses. The company collaborates with 34 partner institutions, including premier Indian institutes such as IITs and IIMs, as well as global names like the Swiss School of Management and the Rotman School of Management at the University of Toronto.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.