Jaro Education Files DRHP for INR 570 Cr IPO Prior to filing its DRHP, the e-learning platform might potentially think about a pre-IPO placement of up to INR 34 crore, which could result in a smaller fresh issue size and better capital structure.
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Mumbai-based Jaro Institute of Technology Management and Research Limited, widely known as Jaro Education, has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in anticipation of its Initial Public Offering (IPO).
The proposed IPO comprises a fresh issue of up to INR 170 crore, along with an offer for sale amounting to INR 400 crore from the promoter selling shareholder, Sanjay Namdeo Salunkhe.
Notably, the IPO will have a face value of INR 10 per equity share, indicating Jaro Education's intent to provide accessible investment opportunities for potential shareholders.
The offering will be managed by leading financial entities, including Nuvama Wealth Management Limited, Motilal Oswal Investment Advisors Limited, and Systematix Corporate Services Limited, with Bigshare Services Private Limited serving as the registrar of the offer.
As part of its fundraising strategy, the company may also consider a pre-IPO placement targeting an aggregate of up to INR 34 crore prior to the DRHP filing. This move could lead to a reduction in the fresh issue size, further optimising the capital structure for Jaro Education.
The proceeds from the IPO are earmarked for key operational enhancements. Jaro Education intends to allocate INR 81 crore for marketing, brand-building, and advertising initiatives, while INR 48 crore will be utilised for the prepayment or scheduled repayment of outstanding borrowings, aligning with its strategic objectives for sustainable growth.
The allocation structure stipulates that not more than 50 per cent of the net offer will be available for qualified institutional buyers, with a minimum of 15 per cent designated for non-institutional bidders and at least 35 per cent reserved for retail individual investors.
Founded in 2009 by Sanjay Namdeo Salunkhe and supported by Ranjita Raman, Jaro Education specialises in delivering personalised, technology-driven degree and certification programs in partnership with 34 esteemed institutions, including IITs and IIMs.
With a presence spanning over 22 offices and learning centers across major cities and 15 immersive tech studios on prestigious campuses, Jaro Education offers an extensive array of 239 courses, including Doctor of Business Administration (DBA), Master of Business Administration (MBA), and various online and hybrid certification programs in collaboration with top-ranking institutes.
As of March 31, 2024, Jaro Education stands poised for continued growth in the dynamic e-learning landscape, leveraging its robust partnerships and innovative offerings to cater to the evolving needs of learners in India and beyond.
