Jaro Institute of Technology Management and Research Files for IPO

2 Oct 2024 , 09:01 PM

Jaro Institute of Technology Management and Research, has filed a draft red herring prospectus (DRHP) with SEBI to raise ₹570 crore through an Initial Public Offering (IPO). The Mumbai-based company is a specializing in online higher education and upskilling.

According to the draft papers, the IPO will comprise a fresh issue of equity shares worth ₹170 crore, along with an offer-for-sale (OFS) of ₹400 crore by the company’s promoter, Sanjay Namdeo Salunkhe.

Jaro’s promoters currently hold an 85.03% stake in the company, while the remaining 14.97% is held by 473 shareholders. Additionally, the company may consider a pre-IPO placement of up to ₹34 crore before officially filing the red herring prospectus with the Registrar of Companies. If successful, the pre-IPO funds will be deducted from the fresh issue.

The company plans to use the IPO proceeds for marketing and brand-building efforts, repaying debt, and for general corporate purposes. As of September 23, 2024, Jaro Education had total borrowings of ₹48.7 crore, indicating its intent to use the IPO proceeds to become debt-free.

Jaro Institute operates with a pan-India presence, featuring over 22 learning centers across major cities for offline education. It collaborates with 34 partner institutions, including top-tier Indian institutions such as IITs and IIMs, as well as international organizations like the Swiss School of Management and the Rotman School of Management at the University of Toronto.

The IPO will be managed by Nuvama Wealth Management, Motilal Oswal Investment Advisors, and Systematix Corporate Services.