Crizac IPO Opens July 2 with ₹860 Crore Offer for Sale at Price Band of ₹223 to ₹245

Crizac, one of the leading international education recruitment platforms, is launching its initial public offering (IPO) with a book-built offer worth ₹860 crore. This entire amount constitutes an Offer for Sale (OFS) of 351.02 lakh shares, allowing existing shareholders to offload their stakes while bringing the company onto India’s major stock exchanges.

The subscription period for the Crizac IPO will open on July 2, 2025, and close on July 4, 2025. The price band has been set between ₹223 and ₹245 per equity share. This pricing aims to balance investor demand with the company's valuation goals, but experts suggest it may be fully priced, leaving little room for immediate listing gains.

Key Dates and Listing Details

Investors can expect the allotment of shares to be finalized around Monday, July 7, 2025. The tentative listing date is set for Wednesday, July 9, 2025, when Crizac shares will debut on both BSE and NSE. These dates will be crucial for those tracking the company's market debut, assessing listing-day volatility, and planning trading strategies.

Lot Size and Investment Requirements

For retail investors, the minimum lot size is 61 shares, translating to an investment of approximately ₹14,945 at the lower end of the price band. For High-Net-Worth Individuals (HNIs), the minimum bid is 14 lots (854 shares), which requires an investment of ₹2,09,230. This tiered structure ensures broad market participation while aligning with SEBI’s regulations for IPO applications.

Lead Managers and Registrar

The IPO is managed by seasoned investment banks. Equirus Capital Private Limited and Anand Rathi Advisors Limited are acting as the Book Running Lead Managers (BRLMs), leveraging their experience to market the issue effectively. MUFG Intime India Private Limited (formerly Link Intime India Private Limited) is the registrar for the issue, responsible for handling the allotment and refund process.

These professional intermediaries add credibility to the offering, ensuring compliance with SEBI guidelines and maintaining investor confidence.

Company Profile and Business Model

Crizac is renowned for offering international student recruitment solutions to higher education institutions across major English-speaking destinations. Its primary markets include the United States, United Kingdom, Canada, the Republic of Ireland, Australia, and New Zealand.

The company supports universities and colleges in identifying, recruiting, and enrolling qualified international students. In doing so, Crizac acts as a vital intermediary between students seeking global education opportunities and institutions aiming to attract diverse cohorts.

Dr. Vikash Agarwal, the company's Promoter, brings over 20 years of experience in the education consultancy industry. Previously associated with Gateway Abroad Ltd., he also led Crizac Ltd., the Material Subsidiary operating in the same line of business. Fellow promoters Manish Agarwal and Pinky Agarwal have each been associated with the company since 2011, bringing over 14 years of experience in the education sector.

Financial Performance and Growth Trajectory

Crizac has demonstrated steady financial growth over recent fiscal years. The revenues from operations for the years ending March 31, 2025, 2024, and 2023 were ₹8,847.76 million, ₹7,634.38 million, and ₹5,178.47 million respectively. This consistent growth highlights strong demand for its services and effective business execution.

Similarly, EBITDA for these periods was ₹2,481.06 million in FY25, ₹2,012.16 million in FY24, and ₹1,521.58 million in FY23. Profit after Tax (PAT) also shows solid growth: ₹1,529.33 million in FY25, ₹1,189.00 million in FY24, and ₹1,121.39 million in FY23. These metrics reflect operational efficiency, effective cost management, and an expanding client base.

Valuation Metrics and Pricing Concerns

Despite these positive trends, market analysts warn that the IPO may be fully priced. Crizac’s pre-issue and post-issue EPS is ₹8.74 for FY24, yielding a P/E ratio of 28.03x. This compares to an industry P/E of approximately 18x, suggesting investors are paying a premium.

Further, key profitability ratios include:

• Return on Capital Employed (ROCE): 40.03% for FY24

• Return on Equity (ROE): 30.24% for FY24

• Return on Net Worth (RoNW): 30.24% for FY24

While these ratios indicate strong profitability, the high P/E ratio raises concerns about valuation risk, especially for investors seeking short-term gains.

Grey Market Premium (GMP) and Market Sentiment

The Grey Market Premium (GMP) for Crizac’s IPO currently stands at ₹0.00. In simpler terms, there is no premium over the issue price in informal trading channels. Market observers caution that this indicates no immediate listing gains are expected.

The Grey Market is an unregulated market where IPO shares trade before official listing. While it can sometimes forecast listing-day demand, in Crizac’s case, the lack of activity suggests muted investor enthusiasm for listing pop. It is important to note that GMP is not officially recognised, and its accuracy varies depending on demand-supply dynamics in an unorganised space.

Given these signals, many brokerages recommend avoiding Crizac IPO for listing gains, instead suggesting investors wait to see post-listing performance before committing funds.

Promoter Background and Experience

Dr. Vikash Agarwal’s experience in the education consultancy industry lends operational expertise and industry connections. His leadership is complemented by Manish Agarwal and Pinky Agarwal, who have overseen the company’s expansion over the last decade.

Their collective experience enhances the company's ability to navigate competitive markets, adapt to changing student preferences, and maintain relationships with prestigious global universities.

Investor Considerations

For investors evaluating Crizac IPO, several key factors stand out:

• Proven business model with international scope and strong client relationships

• Consistent revenue and profit growth, demonstrating operational strength

• High profitability metrics like ROE and ROCE

• Valuation risks given P/E premium over industry average

• Muted GMP indicating low expectation of listing gains

• Strong promoter experience, but dependent on continued execution

Investors must balance growth potential against valuation concerns, particularly if their aim is short-term listing gains.

Conclusion

Crizac’s IPO represents an opportunity to invest in a growing education consultancy brand with a global footprint. However, the fully priced valuation, lack of Grey Market Premium, and high P/E ratio suggest investors should approach with caution.

While the company has delivered strong financial results and shows solid profitability metrics, listing gains appear unlikely. For long-term investors who believe in the international education sector, it may offer value once market volatility settles. For those targeting quick profits, experts largely recommend a wait-and-watch approach or avoiding the IPO for listing gains.

As the IPO opens on July 2, 2025, and closes on July 4, 2025, retail and institutional investors have time to review its pricing, fundamentals, and market conditions before making a decision. The allotment date of July 7 and listing date of July 9 will be the final test of the market’s appetite for Crizac’s ambitious plans.

Disclaimer:

This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

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