Crizac's ₹860cr IPO opens today: Should you subscribe?
What's the story
Crizac, a B2B international education platform, has launched its ₹860 crore initial public offering (IPO) today. The issue consists of an offer-for-sale of 3.51 crore equity shares at a price band of ₹233-245 per share. The IPO will close on July 4 and the company's shares are expected to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on July 9.
Company profile
Crizac connects universities with global student recruitment agents
Founded in 2011, Crizac connects universities from the UK, Canada, Ireland, Australia and New Zealand with global student recruitment agents. The firm sources student applications from over 75 countries through a proprietary technology platform and a network of over 10,000 registered agents. The company's total income has grown exponentially from ₹274 crore in FY23 to ₹849 crore in FY25 at a CAGR of 76%.
Financials
Issue priced at P/E of 28x FY25 earnings
Crizac's profit after tax (PAT) grew from ₹110 crore to ₹152 crore in the same period, with FY25 earnings per share at ₹8.74 and net margins of 18%. The company is debt-free and has strong cash flows, indicating a healthy balance sheet. At the upper end of the price band, the issue is valued at a P/E of 28x FY25 earnings and P/B of 9x, in line with its only comparable listed peer IndiaMART.
IPO specifics
Lot size is 61 shares
The lot size for retail investors is 61 shares, needing a minimum investment of ₹14,945. High net-worth investors have to apply for at least 14 lots (854 shares), amounting to ₹2.09 lakh. Analysts say Crizac is well-positioned to benefit from the continued outflow of Indian students to foreign universities—a market expected to reach 2.5 million students by 2030.
Market challenges
Watch out for regulatory risks
However, potential investors should consider regulatory risks. The UK and Canada—Crizac's largest markets—have recently tightened student visa norms, which could impact future revenue growth. Despite these challenges, Canara Bank Securities said "Crizac combines digital platform scale, a rising global education trend, and disciplined financial performance—elements that long-term investors typically prize."