Jaro Education to float IPO worth ₹600 Crore

28 Feb 2024 , 10:08 AM

Jaro Education, which offers online courses in conjunction with universities, has hired bankers to manage its initial public offering of shares, which is expected to be filed next month.

Several edtech businesses, including Upgrade, Aakash, and Teamlease Edtech, have declared plans to go public amid a boom in IPO activity in India.

Jaro Education, situated in Mumbai and working with schools including IIMs, IITs, and premier colleges, intends to generate ₹600 Crore with an initial public offering. This would include the issuance of new shares worth ₹330 Crore as well as an offer to sell shares worth ₹270 Crore by the company’s founder and workers, who collectively own the whole shareholding.

It has chosen Nuvama Wealth, Motilal Oswal Financial Services, and Systematix to handle the public offering. According to reports, Jaro Education has finalised the IPO proposal and appointed bankers.

The revenues from the sale of new shares will be used to sell new programmes, implement a freemium model, and cover other operating expenditures.

Jaro Education is run by first-generation entrepreneur Sanjay Salunkhe, who owns roughly 95% of the company. Employees own the remaining share. The bootstrapped company began operations in 2009, with an emphasis on training working professionals in India.

In fiscal 2023, the firm recorded sales of ₹122 Crore, up 47% from the previous year. Its operational profit increased 37% to ₹26 Crore.

Jaro Education collaborates with 28 institutions and offers 15 undergraduate programmes and 56 certification courses in subjects like as management, finance, and business analytics.

In the last 12 years, just one education-related firm, Veranda Learning Solutions, has gone public. It raised around ₹200 Crore in March 2022. Prior to that, in April 2012, the coaching services business MT Educare raised around ₹100 Crore through an IPO.

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