IPO Details
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Schedule of Jaro Institute of Technol. Mgt. and Research Ltd
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End date
Allotment of bids
Refund Initiation
Listing on exchange
Issue Highlights
Initial public offering of up to [] equity shares of face value of Rs.10 each (equity shares) of Jaro Institute of Technology Management and Research Limited (the company or the issuer) for cash at a price of Rs.[] per equity share (including a share premium of Rs.[] per equity share) (offer price) aggregating up to Rs. 570.00 crores (the offer) comprising a fresh issue of up to [] equity shares of face value Rs.10 each aggregating up to Rs. 170.00 crores by the company (the fresh issue) and an offer for sale of up to [*] equity shares of face value Rs.10 each aggregating up to Rs. 400.00 crores by Sanjay Namdeo Salunkhe (promoter selling shareholder) (the offer for sale). The price band and the minimum bid lot will be decided by the company, in consultation with the brlms.
About Jaro Institute of Technology and Research Ltd IPO
The IPO of Jaro Institute of Technology and Research Ltd is a 100% book-built issue comprising a fresh issue and an offer for sale. The fresh issue size aggregates up to ₹170 crore while the offer for sale aggregates up to ₹400 crore.
Objectives of Jaro Institute of Technology and Research Ltd IPO
The company plans to utilise the IPO proceeds for:
- Marketing, brand building and advertising activities
- Prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the company
- General corporate purposes
Jaro Institute of Technology and Research Ltd IPO Valuation
Jaro Institute of Technology and Research Ltd Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the offer |
Non-institutional Bidders | Not less than 15% of the offer |
Retail individual Bidders | Not less than 35% of the offer |
Industry Outlook
The education system in India is among the largest in the world. The education sector in India is expected to reach ₹250 lakh Mn by FY 2028 from ₹146 lakh Mn in FY 2023, thus growing at a CAGR of 11.4 % during the forecasted period.
Company Information
Jaro Institute of Technology and Research Ltd is one of India’s leading online higher education and upskilling platform companies, in terms of EBIDTA, EBIDTA Margin, PAT and PAT Margin, Return on Equity (ROE) and Return on Capital Employed (ROCE) as of March 31, 2023.
Strengths of Jaro Institute of Technology Management and Research Ltd
Market leading position in online higher education and upskilling space with strong brand image and pan-India presence
Comprehensive solutions to partner institutions and learners
High revenue predictability backed by long-lasting, robust client relationships across industries
Proven track record in delivering high quality and diversified course offerings
Risks of Jaro Institute of Technology Management and Research Ltd IPO
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Jaro’s business may be adversely affected if its partner institutions start directly marketing their programs
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The company’s business is dependent on revenue sharing agreements with its partner institutions. If its partner institutions reduce their revenue share once their programs and courses have sufficient vintage to draw enrolments, Jaro’s revenue could decline. This may necessitate increased marketing efforts to acquire new learners, potentially leading to higher acquisition costs.
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Jaro’s success is dependent on the Partner Institutions maintaining the quality of their content and delivery of courses and programs. Any negative feedback on the courses or programs will in turn hamper its ability to drive enrolments.
Jaro Institute of Technology Management and Research Ltd Financials
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Peer Comparison
| Parameter (FY 23) | Jaro Education | UpGrad | Great Learning | Talent Edge | Simplilearn | Imarticus | Eruditus | TimesPro | Intellipaat | Talent Sprint | UNext |
|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (in ₹ crore) | 122.145 | 1169.7 | 391.4 | 25.4 | 684 | 165.3 | 472.9 | 69.6 | 160.2 | 89.4 | 187.3 |
EBITDA Margin in % | 20.9 | -82.7 | -82.4 | -122.4 | -29.4 | 3.8 | -14.8 | 14.7 | 25.2 | 3.9 | -91.3 |
PAT Margin in % | 9.4 | -95.6 | -91 | -152.9 | -34.9 | 2.1 | -16.4 | 10.4 | 17.6 | -4.3 | -125.7 |
IPO Registrar and Book Running Lead Manager
Bigshare Services Pvt Lt is the registrar of Jaro Institute of Technology Management and Research Ltd IPO. The book running lead managers are:
- Nuvama Wealth Management Ltd
- Motilal Oswal Investment Advisors Ltd
- Systematix Corporate Services Ltd
Business Model
Jaro delivers personalised, technology-driven degree programs and certification programs in collaboration with its partner institutions. Its repertoire includes:
- Doctor of Business Administration
- Master of Business Administration
- Master of Commerce
- Master of Arts
- Post Graduate Diploma in Management
- Master of Computer Applications
- Bachelor of Commerce
- Bachelor of Computer Applications and others
Company Growth Trajectory
The company’s gross revenue stood at ₹487.734 crore in FY 24, up from ₹250.129 crore in FY 22. Its EBITDA stood at ₹63.559 crore in FY 24, up from ₹43.598 crore in FY 22.
Market Position
Jaro is one of India’s leading online higher education and upskilling platform companies. With a pan-India presence of over 22 offices-cum-learning centres across major cities for offline learning, apart from 15 immersive tech studio set-ups in the campuses of various IIMs, it caters to a total of 34 partner institutions, as on March 31, 2024.
Jaro Institute of Technology Management and Research Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 202.567 | 124.585 | 86.880 |
Profit Before Tax (in ₹ crore) | 51.991 | 15.637 | 36.970 |
EBITDA in ₹ crore | 63.559 | 25.553 | 43.598 |
EPS in ₹ | 18.92 | 5.66 | 16.47 |
Jaro Institute of Technology Management and Research Ltd Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crore) | 51.991 | 15.637 | 36.970 |
Net cash Provided by/ (used in) Operating Activities (in ₹ crore) | 16.966 | 2.876 | 10.683 |
Net Cash Generated From / (Used in) Investing Activities (in ₹ crore) | 47.148 | 7.674 | 6.112 |
Net Cash Generated From / (Used in) Financing Activities (in ₹ crore) | 18.606 | 5.454 | 1.173 |
Cash and Cash Equivalents at the end of the Year ((in ₹ crore) | 5.703 | 17.279 | 7.027 |
How to Check Allotment Status of Jaro Institute of Technology Management and Research IPO Status?
You can check the allotment status of this IPO through the BSE website or through its registrar’s portal. To check status on BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt
- Select the Issue Name from the drop-down.
- Enter your application number or PAN number
- Check the box that says “I’m not a Robot” and click on “Search” to know the allotment status
To check status on the registrar’s portal:
- Visit the website of Bigshare Services Pvt Ltd
- Select any one server among the three
- Select the company’s name
- Enter either the ‘Application Number’, ‘Beneficiary ID’ or ‘PAN Number’
- Enter the captcha and click on ‘Search’
How to Apply for Jaro Institute of Technology Management and Research IPO?
To apply for this IPO:
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
Jaro Institute of Technol. Mgt. and Research Ltd IPO FAQs
What is the IPO of Jaro Institute of Technology Management and Research Ltd?
The IPO of Jaro Institute of Technology Management and Research Ltd consists of a fresh issue and an offer for sale. The total issue size of the offer aggregates up to ₹570 crore.
When will the IPO of Jaro Institute of Technology Management and Research Ltd go live?
The exact dates of this IPO are yet to be announced.
From where can I learn more about the IPO of Jaro Institute of Technology Management and Research Ltd?
You can learn more about Jaro Institute of Technology Management and Research Ltd from the company’s draft red herring prospectus here: (SEBI | Jaro Institute of Technology Management and Research Ltd DRHP)
