Jaro Institute IPO: 8 Key Points to Know Before Applying to this IPO!
The Jaro Institute IPO has opened for subscription, bringing a unique business model from the online higher education space to the public market. As an online upskilling platform with partnerships with top-tier institutions, it has a lot going for it. After reviewing its business and financials, I am personally applying for this IPO, targeting small listing gains with a medium-term perspective. Here is my breakdown of the key points to consider before you decide to apply.
1. The Business Model: Asset-Light & Scalable
Jaro is not a university or a content creator. It’s an online higher education enabler. It partners with institutions (including 7 IITs and 7 IIMs) to help them design courses, provide the tech infrastructure for live sessions, and, most importantly, handle all the marketing and sales. This asset-light model means the company doesn’t need to invest heavily in faculties or course design, allowing for high scalability and operational leverage. The company's focus on working professionals also ensures a high per-learner fee and a strong course completion ratio.
2. Strong Financials & Profitability
Jaro stands out in the education sector for being consistently profitable. The company has shown a healthy growth trajectory, with revenue increasing significantly over the past few years.
| Particulars (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 122.1 | 202.0 | 252.3 |
| PAT | 11.4 | 38.0 | 51.3 |
3. Use of IPO Proceeds
The ₹450 Cr IPO includes a fresh issue of ₹170 Cr. The company plans to use this capital for three key objectives:
- ₹81 Cr for marketing and advertising to drive aggressive customer acquisition.
- ₹45 Cr for debt repayment, which will make the company almost debt-free.
- The remaining funds will be used for General Corporate Purposes.
4. Valuation & Growth Potential
With an FY25 P/E of 38x, Jaro appears reasonably priced, especially when compared to unlisted, often loss-making peers. Assuming a 25% revenue growth in FY26, the company could achieve a PAT of around ₹68-70 Cr, bringing its forward P/E to approximately 35x. The online education sector is a sunrise industry with strong tailwinds, and Jaro’s scalable model and strong brand partnerships give it a clear path for sustained growth.
5. Anchor Book and Investor Sentiment
The company received a good response from its anchor investors, raising ₹135 Cr from 19 funds at the upper price band of ₹890. The anchor book included participation from marquee institutions, signaling confidence in the company's business model and long-term prospects.
6. Key Risks
While I am applying for this IPO, it is crucial to be aware of the risks.
- Concentration Risk: The top 3 customers account for a significant 53% of revenue, which could be a concern if these partnerships are disrupted.
- High Competition: The ed-tech space is highly competitive with both funded startups and traditional institutions.
- High Marketing Spend: The company's high marketing expenditure (27% of revenue) is necessary for customer acquisition, but it is a substantial cost to bear.
7. Final Verdict
Jaro Institute has a unique, asset-light, and scalable business model in a high-growth sector. Its profitability and partnerships with premier institutions give it a competitive edge. While the valuation is reasonable, a small valuation cut would have made the IPO even more attractive. However, given the company's strong fundamentals and positive long-term growth potential, I believe it's a good investment. I am applying for this IPO with a small-to-reasonable listing gain expectation and a plan to hold it for the medium term to track its performance.
8. Key Dates & FAQs
| Particulars | Details |
|---|---|
| Issue Dates | September 23 - 25, 2025 |
| Price Band | ₹846 - ₹890 per share |
| Issue Size | ₹450 Cr |
| Lot Size | 16 shares (~₹14,240) |
| Allotment Date | September 26, 2025 |
| Listing Date | September 30, 2025 |
Q. What is the latest GMP of Jaro Institute IPO?
As of today, September 25, 2025, the Grey Market Premium (GMP) is around ₹106, suggesting a potential listing gain of about 11.91%.
Q. What is the subscription status of Jaro Institute IPO?
As of Day 2, the IPO was subscribed around 2.05 times overall, with the retail portion subscribed 2.12 times and the NII portion subscribed 3.67 times.
Q. What is the of Jaro Institute's business model?
Jaro is an online higher education platform that partners with universities to handle marketing, sales, and tech infrastructure for online courses and degrees.
Just a personal view, for educational purposes only. Do your own due diligence before applying.