Source: Business Standard
New Delhi, September 30, 2025 – The Jaro Institute of Technology Management & Research, a company that provides online higher education and upskilling opportunities, was listed on the stock exchanges on Tuesday in a weak first trade. Although there was strong demand for the company’s initial public offering (IPO), Jaro’s stock flatlined upon opening and began slipping below the IPO price.
Jaro Institute’s shares opened on the National Stock Exchange (NSE) at ₹890, the same as the issue price, but lost steam quickly thereafter and hit an intraday low of ₹732.5, down more than 17%. On the Bombay Stock Exchange (BSE), the stock opened at ₹890 as well but then hit a low of ₹756.6, down nearly 15%.
The initial performance was below market expectations. In the days leading up to the listing, Jaro shares were dealt at approximately ₹933 in the grey market, indicating a grey market premium (GMP) of ₹43 or a shrinkage of roughly 4.8% for the issue price. They arrived at the market listing below expectations.
Subscription Status
It was evident that the IPO itself had a good response from investors and based on NSE data, the IPO received 22.06 times subscription status with total bids of 82.13 million shares as against 3.72 million shares available.
Demand for investment was dominated by institutional and affluent investors.
The Non-Institutional Investors (NIIs) subscribed to their portion 35.48 times.
Qualified Institutional Buyers (QIBs) subscribed 35.35 times.
Retail investors showed a level of interest with their portion subscribed 8.71 times.
Structure and Pricing of IPO
The IPO had two components:
A fresh issue of 1.9 million equity shares that would raise approximately ₹170 crore.
An offer for sale (OFS) of 3.1 million equity shares with a value of approximately ₹280 crore.
The price band was set at ₹846–₹890 per share, and the issue was available for subscription between September 23 and September 25, 2025. The basis of allocation was determined on September 26, 2025, and the issue was issued at the upper end of the price band, ₹890.
Usage of Proceeds
Based on the company’s red herring prospectus, the proceeds from the fresh issue will go towards:
- Marketing, building of brand, and advertising expenses
- Repayment or prepayment of borrowings
- General corporate purposes
The company will not receive any proceeds from the OFS, as that portion will go to the selling shareholders.
Market Outlook
The weak debut of Jaro Education Institute demonstrates that a strong subscription to the IPO is no guarantee of a gain on the first day of trading. Investors had faith in the issue, but the swift decline in the stock price after the listing shows there is limited confidence in the valuation plus the trajectory of future growth.
