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Crizac Limited files DRHP for Rs 1000 crore IPO

Posted On : 2024-03-28 22:07:19( TIMEZONE : IST )

Crizac Limited files DRHP for Rs 1000 crore IPO

Kolkata-based Leading Student Recruitment Solution Provider, Crizac Limited, offering international student recruitment solutions to global institutions of higher education in the United Kingdom, Canada, the Republic of Ireland, Australia, and New Zealand (ANZ), has filed its draft red herring prospectus (DRHP) with the market regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).

The IPO, with a face value of Rs 2 per equity share, is entirely an offer for sale of up to Rs 1,000 crore by the promoter selling shareholders.

The offer for sale consists of the sale of equity shares of up to Rs 841 crore by Pinky Agarwal and up to Rs 159 crore by Manish Agarwal. The offer includes a reservation for subscription by eligible employees.

The offer is being made through the book-building process, wherein not more than 50% of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the net offer shall be available for allocation to non-institutional investors, and not less than 35% of the net offer shall be available for allocation to retail individual investors.

Crizac Limited has established strong partnerships with leading universities in the United Kingdom and is a major player in student recruitment from India to the UK, holding a significant market share of approximately 13.0% based on the number of Indian students pursuing higher education in the UK in 2023, according to a F&S report mentioned in the DRHP.

During the six months ending September 30, 2023, and in the last three fiscal years, Crizac Limited facilitated enrollment applications from over 72 countries through its registered agents on its technology platform.

It processed more than 3.82 lakh student applications and collaborated with over 140 global universities. As of December 31, 2023, the company had over 5,300 registered agents globally, including 1,819 active agents in Fiscal 2023, with a significant presence in India and various countries like the United Kingdom, Nigeria, Pakistan, Bangladesh, Nepal, Sri Lanka, Kenya, Vietnam, Canada, and Egypt.

Based in Kolkata, Crizac Limited has experienced substantial growth, achieving an 81.02% Compound Annual Growth Rate (CAGR) in revenue from operations in Fiscal 2014 to its proforma consolidated revenue from operations in Fiscal 2023, driven by its partnerships with global universities.

The company collaborates with prestigious institutions such as the University of Birmingham, University of Surrey, University of Sunderland, Nottingham Trent University, University of Greenwich, University of West London, University of Portsmouth, De Montfort University, Glasgow Caledonian University, Aston University, University of Dundee, Dundalk Institute of Technology, Coventry University, and Swansea University.

Its advisory board includes Maximus Armani, Christopher Mark Bustin, Maire Caitlin Gallen, and David John Caine, who bring expertise from the international finance and global education industry.

Crizac Limited's proforma consolidated revenue from operations during the fiscal year 2023 increased 79.47% to Rs 472.97 crore from Rs 263.53 crore in the previous year, primarily due to an increase in the revenue from education consultancy services. Profit after tax grew 65.50% from Rs 67.76 crore for the Financial Year 2022 to Rs 112.14 crore for the Financial Year 2023.

For the six months ended September 30, 2023, proforma consolidated revenue from operations stood at Rs 262.89 crore, and profit after tax stood at Rs 89.61 crore.

India's higher education system is among the largest globally, with over 70 million enrolled students and a capacity for an additional 40 million students created in the last two decades. The Indian education sector was valued at around US$117 billion (Rs 9.72 trillion) in FY 2020, with projected growth to reach US$225 billion (Rs 18.69 trillion) by FY 2025 and US$313 billion (Rs 26 trillion) by FY 2030.

Equirus Capital Private Limited and Anand Rathi Advisors Limited are the book-running lead managers, and Link Intime India Private Limited is the registrar of the issue.

Source : Equity Bulls


Crizac FundRaising IPO DRHP SEBI