Crizac Launches IPO with Rs 860-Crore Subscription Now Open

Crizac, a prominent player in the international education sector, has launched its initial public offering (IPO) worth Rs 860 crore, which opened for subscription on Wednesday and will remain available until July 4. The shares are priced between Rs 233 and Rs 245 each, with a listing anticipated on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on July 9. The IPO consists entirely of a pure offer-for-sale (OFS) of 3.51 crore equity shares, and early indicators show a grey market premium of approximately 9% over the issue price.

Company Overview and Business Model

Founded in 2011, Crizac operates a business-to-business (B2B) platform that connects universities in countries such as the UK, Canada, Australia, Ireland, and New Zealand with student recruitment agents across more than 75 nations. The company has developed a proprietary technology platform that supports a network of over 10,000 registered agents, facilitating the recruitment of international students. This model positions Crizac as a key player in the growing market for global education, which is increasingly appealing to students from India and other countries.

Financial Performance and Growth Prospects

Crizac has demonstrated impressive financial growth, with revenues soaring from Rs 274 crore in FY23 to an estimated Rs 849 crore by FY25. This represents a remarkable compound annual growth rate (CAGR) of 76%. Additionally, the company’s profit after tax has increased from Rs 110 crore to Rs 152 crore during the same period, resulting in earnings per share of Rs 8.74 and net margins of 18%. The company is also debt-free, boasting strong cash flows that reflect a robust financial position. At the upper end of the price band, Crizac’s valuation stands at a price-to-earnings (P/E) multiple of 28 times FY25 earnings, alongside a price-to-book (P/B) ratio of 9 times, aligning it closely with IndiaMART, its only comparable publicly listed peer.

Investment Opportunities and Risks

For retail investors, the minimum lot size is set at 61 shares, requiring an investment of approximately Rs 14,945. High-net-worth individuals (HNIs) must bid for at least 14 lots, totaling 854 shares, which translates to a minimum investment of around Rs 2.09 lakh. Analysts express optimism about Crizac’s future, particularly in light of the increasing number of Indian students pursuing international education. Projections suggest that the market could reach 2.5 million outbound students by 2030. Crizac’s focus on Tier-1 destinations and its scalable, technology-driven platform present a unique opportunity in the education facilitation sector.

Market Challenges and Regulatory Environment

Despite the positive outlook, potential investors should be aware of the risks associated with regulatory changes in key markets such as the UK and Canada. Recent adjustments to student visa policies in these countries could affect student mobility, thereby impacting Crizac’s revenue projections. Analysts caution that while the company has strong fundamentals, these external factors could pose challenges to its growth trajectory. As the IPO progresses, investors are encouraged to weigh these considerations carefully before making investment decisions.

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