Mumbai, October 1 (Markets Update) – Shares of Jaro Institute of Technology and Management Research had a weak market debut on Tuesday, closing 15.4% lower than the IPO price despite strong demand during the subscription phase.
Listing Day Performance
- IPO Price: ₹890 per share
- Opening Price: Nearly 10% lower than the issue price
- Closing Price (NSE): ₹753 per share (15.4% discount)
This performance contrasts with the strong response the company’s ₹450-crore IPO received last week, which was subscribed 22 times.
Subscription Details
The IPO, open between September 23 and 25, drew significant interest:
- Institutional Investors: 35 times subscribed
- Non-Institutional Investors: 35 times subscribed
- Retail Investors: 8.7 times subscribed
The issue comprised a ₹170 crore fresh issue and a ₹280 crore offer-for-sale (OFS).
Grey Market Premium vs Reality
Ahead of listing, shares of Jaro Institute traded in the grey market at a premium of around ₹43 per share, hinting at modest listing gains. However, the actual debut was weaker than expected, underscoring the speculative nature of grey market trends.
Company Overview and Fund Utilisation
Founded in 2009, Jaro Institute is an edtech company focused on higher education and executive upskilling. It collaborates with top Indian institutions, including IITs and IIMs, to deliver programs.
The company plans to use the IPO proceeds as follows:
- ₹81 crore: Marketing, brand building, and advertising
- ₹45 crore: Prepayment or repayment of certain borrowings
- Balance: General corporate purposes
Market Outlook
Despite the strong subscription figures, the muted listing highlights investor caution amid broader market volatility. Analysts suggest that Jaro’s long-term performance will depend on sustained demand for executive education and upskilling programmes.
Disclaimer
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