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IPO Analysis > jaro-institute-ipo-mainboard

Jaro Education Shares, Unlisted Share ... 

Decoding Jaro Education IPO News

The ed-tech market in India was valued at USD 7.5 billion in 2024 and is anticipated to grow at a CAGR of 25.8% for the next five years. Jaro Institute of Technology Management and Research Limited is a prominent player in the market. It is about to launch its IPO.


The lead managers of the Jaro IPO are Systematix Corporate Services Limited, Motilal Oswal Investment Advisors Limited and Nuvama Wealth Management Limited. Moreover, the RTA (registrar) is Bigshare Services Private Limited

For detailed information, please refer to the DRHP.

Note: For 50% of the shares, the anchor lock-in period expires 30 days following the actual allocation, and for the remaining part, it ends 90 days later.

Jaro Education IPO: Company Profile

With over 15 years of industry experience, the company profile of Jaro Institute of Technology Management Research Ltd. has achieved the following milestones.


Particulars

Description

Established in

2009

Founder

Dr Sanjay Salunkhe

Students

+3.5 lakhs

Learning centres in India

23+

Global footprint

USA, Singapore, India

Collaboration

Prominent institutes like MIT, Wharton, IIMs, IITs, XLRI

Corporate Associations

1,000+

Competitors

Vedantu, Udemy, Unacademy, Swayam platform, etc.


Highlights of the Jaro IPO

The Jaro Education IPO is worth ₹5,700 million and might go live soon. The main points of the impending IPO are thoroughly covered in this section.

  • Jaro IPO date

The Jaro Education IPO date has not been disclosed yet.


Offer opening date

Not disclosed yet

Offer closing date

Not disclosed yet

Anticipated Anchor investor bidding date

One day before the offer opening date

Anticipated completion of allotment

3 business days following the IPO close

Expected listing

3 business days following the IPO close

Listed at

NSE and BSE

  • Issue size

The size of the Jaro Education IPO, along with the Jaro Education share price is discussed in this section.


Particulars

Number of equity shares

Aggregate Value (₹)

Fresh issue

Not disclosed

1,700 million

Offer for sale

Not disclosed

4,000 million

Overall issue

Not disclosed

5,700 million


  • Objectives of the offer

The following is the plan for using the net funds from the Jaro IPO.


Particulars

Description 

(₹ in million)

Advertisement-related expenses, such as marketing and brand-building related expenses

810.00

Debt repayment or prepayment

480.00

Other business expenses

Not disclosed. Not greater than 25% of the proceeds (fresh issue).


  • Other takeaways

Few other key takeaways from the Jaro Education IPO share price are discussed below.


Particulars

Description

Face value of each share

₹ 10

Price Range

Not disclosed

Lot size

Undisclosed 


  • Jaro Education IPO: Categorisation of different investors

Certain parameters differ among different categories of investors.


Parameters

QIB

NII

RII

Percentage of the offer available for allotment

Not over 50%

At least 15%

Not less than 10% of the offer left after QIB and Non-institutional bidders allocation

Minimum bid

₹ 2,00,000

₹ 2,00,000

-

Maximum bid

-

-

₹ 2,00,000


There are several other upcoming IPOs, click here and check their detailed coverage.

Key Financials before the Jaro IPO

The financial statements show the following key details.


Parameters

Year ended 31 March 2024 (₹ million)

Year ended 31 March 2023 (₹ million)

Revenue from operations

1,990.45

1,221.45

Other income

35.22

24.40

Profit after tax

379.72

116.54

EPS for continued and discontinued

Basic (in ₹)

Diluted (in ₹)



36

36



18.90

18.71

Operating cashflow

(169.66)

28.76


The revenue of Jaro Education has surged 63% YoY and profit margin doubled, indicating a strong operational efficiency.The ratios related to the company can give a more panoramic view. Therefore is discussed below.


Parameters

31 March 2024

31 March 2023

Current ratio

2.59

1.62

Debt-equity ratio

0.21

0.45

ROE (%)

37.82%

15.05%

ROCE (%)

40.90%

19.12%

Net Profit (%)

19.10%

9.35%


The PE ratio is discussed here based on the share price of Jaro Education cannot be determined because the cap price and floor price has not been disclosed.


Parameters


PE basic or diluted

Not disclosed

Industry PE

No listed company in this industry


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Strengths and Risks

The strengths and risks associated are discussed here. 


Strengths


  • Wide network of centres that can aid in meeting growing demands.

  • Its global presence not only gives a wider audience but also helps a stronger brand recall.

  • Association with prominent institutes like IITs and IIMs ensure quality and aid market penetration.

  • Significant customer base is crucial for word of mouth marketing that is crucial in this sector.

  • Awards and recognition demonstrating domain expertise.


Risks


  • It depends on partner institutes that can set direct channels to students.

  • Reputation risk for the underperformance of the partner institutes.

  • It faces fierce market competition due to the presence of various ed-tech platforms.

Should you invest in the Jaro Education IPO?

The Jaro IPO is set to launch soon. The company aims to expand the market share of Jaro Education, given the growing online education market. Understanding the financial statements and IPO details can aid informed decision-making. Click here to apply for the IPO now!
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