Crizac IPO Opens: 'Subscribe' Says Geojit

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Geojit Report

Crizac Ltd.'s launched its initial public offering on July 02 and the offer closes for subscription on July 04. The Kolkata-based student recruitment solutions provider to international institutions has fixed the price band in the range of Rs 233 and Rs 245 per share.

The Rs 860-crore issue is an entirely offer-for-sale of 3.51 crore shares with no component of fresh issue.

Purpose of IPO

The issue is primarily an Offer for Sale of up to 3,51,02,040 equity shares totalling Rs 860 crore.

The objective of the issue is to achieve the benefits of listing the equity shares on the stock exchanges.

At the upper price band of Rs 245, Crizac’s FY25 P/E ratio of 28x appears fairly priced. The company has built a strong foothold in the international higher education consultancy sector, supported by enduring partnerships with prestigious global institutions.

With strategic plans to expand into the U.S. market and diversify into B2C services, Crizac is well-positioned to drive revenue growth and improve profitability. Therefore, we assign a ‘Subscribe’ rating with a medium- to long-term investment perspective.

Key Risks

The heavy reliance on the UK market (95% of revenue). However, they are planning to expand presence in the United States.

A significant portion of revenue (53%) is concentrated among three major global academic institution.

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