IPO Details

• IPO Opening: September 23, 2025
• IPO Closing: September 25, 2025
• IPO Size: ₹450 crores; Fresh Issue of ₹170 crores & Offer for Sale (OFS) of ₹280 crores
• IPO Price Band: ₹846 to ₹890 per share
• Lot Size: 16 Shares
• Investor Allocation: QIB not more than 50%, NII not less than 15%, Retail not less than 35%
• Lead Managers: Nuvama Wealth Management Ltd., Motilal Oswal Investment Advisors Ltd., and Systematix Corporate Services Ltd.
• Registrar: Bigshare Services Pvt. Ltd.

About the Company

• Jaro Institute of Technology Management and Research Limited is an online higher education and upskilling platform in India, incorporated in 2009. It markets and facilitates the delivery of online degree programs and certification courses in partnership with 36 institutions. The company has a pan-India presence with over 22 offices-cum-learning centres and 17 tech studio set-ups.
• Main products/services: Online degree programs (DBA, MBA, M.Com, M.A., PGDM, MCA, M.Sc, B.Com, BCA) and cross-disciplinary certification courses.
• Sales & manufacturing units: Not applicable.
• Employees: 860 employees as of March 2025.
• Promoters: Sanjay Namdeo Salunkhe and Balkrishna Namdeo Salunkhe.
• Branches/network: Over 22 offices-cum-learning centres and 17 immersive tech studio set-ups in IIM campuses across India.

Financials

Post IPO Market cap: ₹1971.91 crore. P/E FY24: 50.68 times. P/E FY25: 38.16 times.

The company has posted steady growth in its top and bottom lines for the reported periods. Revenue from operations increased by 27% from FY24 to FY25, and Profit After Tax grew by 36%.

Anchor Issue

• Jaro Institute raised ₹135 crore from 19 anchor investors in its IPO anchor round.
• The anchor investors with their allocation percentages are: 360 One Equity Opportunity Fund (11.11%), Societe Generale (9.63%), LC Pharos Multi Strategy Fund (8.15%), WhiteOak Capital Flexi Cap Fund (6.73%), WhiteOak Capital Mid Cap Fund (4.19%), WhiteOak Capital Special Opportunities Fund (3.70%), Citigroup Global Markets Mauritius, Nomura Singapore, ITI Mutual Fund , and Abbakus Asset Manage
• The remaining anchor investors include Singularity Equity, Subhkam Ventures, Universal Sompo, Viney Growth Fund, and additional WhiteOak Capital schemes, with smaller allocation percentages.
• Total allocation to mutual funds (WhiteOak Capital and ITI across five schemes) is 23.33% of the anchor portion.

Salient points

• Use of Funds: ₹81 crores for marketing and brand building, ₹45 crores for prepayment/repayment of borrowings, and the rest for general corporate purposes.
• Business Scenario: The online higher education and upskilling market in India is projected to grow at a CAGR of 25.7% from FY23 to FY28. Government policies like the National Education Policy 2020 are positive for the sector.
• Business Verticals: Higher Education Degrees and Upskilling Certification Courses.
• Revenue Model: Revenue sharing with partner institutions, ranging from 23% to 70% of fees collected from learners, which include application, tuition, and exam fees.
• Growth Strategies: Expand partnerships with more institutions, invest in marketing, enhance digital capabilities with AI, expand geographically, and use freemium offerings to acquire users.
• Risks: Dependency on partner institutions for content; revenue concentration from top partners; geographic concentration in Western India; historical negative cash flows; and reliance on third-party LMS providers.
• Litigations: One material civil suit filed by Bennet, Coleman and Co. Ltd. seeking damages of ₹71.75 million for alleged data theft. Two tax proceedings involving an aggregate amount of ₹25.50 million.
• Revenue Split by Region (FY25): Western region 73%, Southern region 15.09%, Northern region 11.05%, Eastern region 0.40%, International 0.46%.
• Revenue Split by Service (FY25): Enrolment & other ancillary services contributed ₹204.89 crores, and Program management services contributed ₹47.38 crores.
• Clients: 36 partner institutions, including 7 IIMs and 7 IITs, and top universities like Symbiosis International and Dr. D.Y. Patil Vidyapeeth.
• Working Capital Days: 189.61 days in FY25, up from 131.69 in FY24.
• CAGR (FY23-25): Revenue from Operations CAGR of 43.83% and PAT CAGR of 111.07%.

Peers

As per the offer document, the company has no listed peers to compare with.

Management commentary

• The dream was to make quality education from top faculties like IIMs and IITs accessible across India, especially to talented individuals in rural areas, through online platforms.
• The company has multiple tie-ups with premier institutions like IIM Ahmedabad, IIT Delhi, Symbiosis, and Manipal University.
• Education is an evergreen field; the company focuses on delivering good work which generates positive word-of-mouth instead of spending on TV advertisements.
• Agreements with IIMs and IITs for specific programs are exclusive, and the institutions are selective with their partnerships, which helps maintain brand image.
• From the fresh issue of ₹170 crores, approximately ₹80 crores will be used for digital marketing, ₹45 crores for debt repayment, and the remainder for general corporate purposes.
• The business currently operates at an EBITDA margin of around 30-33% and a PAT margin of about 20%.

Opinion

• I may apply for the IPO.
• Post IPO equity capital: ₹22.16 crore.
• P/E for FY 24: 50.68 times.
• P/E for FY 25: 38.16 times.
• Investment Rationale:
  • The company is a leading online higher education and upskilling platform in India.
  • The company has shown improving profitability, with margins expanding over the last three fiscal years.
  • It has strong partnerships with 36 renowned institutions, including several IIMs and IITs.
  • It may get attention as a first-mover in listed space.

• This post is exploratory and educational purposes only.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.