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Edtech Firm Jaro Education's Muted IPO Debut Raises Valuation Concerns
30 Sep
Summary
- Jaro Education's IPO attracted massive demand but listed flat at IPO price
- Valuation concerns overshadow the company's strong financials and hybrid model
- Intense competition in the edtech space raises questions about Jaro's growth prospects
On September 30, 2025, Jaro Education, a prominent edtech platform in India, made a muted market debut, listing flat at its IPO price of ₹890 per share on both the BSE and NSE. This comes despite the IPO, which comprised a fresh issue of ₹170 crore and an offer-for-sale of ₹280 crore, attracting massive demand across all investor segments.
The qualified institutional buyer (QIB) portion was subscribed a massive 37 times, while non-institutional investors (NIIs) and retail investors bid 37.3 times and 9.1 times, respectively, the shares reserved for them. Ahead of the issue opening, Jaro had also raised ₹135 crore from anchor investors, locking in marquee names. However, the grey market signal remained restrained, pointing to valuation concerns rather than a lack of appetite for the business.
Jaro Education, better known as Jaro Institute, has built a strong position as a leading higher education and upskilling platform in India. The company partners with 36 institutions and offers over 268 degree and certification programs, spanning MBA, PGDM, M.Com, MCA, BCA, and niche tech-focused courses. It operates a hybrid model, with 22 learning centers across India and 17 immersive studio setups within IIM campuses.
In the fiscal year 2025, Jaro reported revenues of ₹254 crore and a net profit of ₹51.7 crore, translating into a PAT margin of over 20%. Its return on equity stands at an impressive 35.8%, one of the highest in the edtech and higher education space. However, the company's valuation at a P/E of 38x post-issue earnings indicates that a lot of growth expectations are already priced in.
Going forward, investors will closely monitor Jaro's ability to sustain growth as competition intensifies in the online education space, its execution in hybrid delivery, and how efficiently it deploys IPO proceeds, particularly towards brand building and debt repayment. With the education technology sector undergoing rapid shifts, Jaro's strong institutional partnerships give it an edge, but the company will need to navigate the challenges posed by the evolving market landscape.
