Crizac IPO — Should You Subscribe Or Not? Read DRChoksey's Report

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Deven Choksey Report

Crizac Ltd.'s will launch 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.

Since the IPO is entirely an OFS, proceeds from the offer will go directly to the selling shareholders.

The allotment for the Crizac IPO is expected to be finalized on July 07.

The shares will be listed on both the National Stock Exchange and the BSE on July 09.

Equirus Capital Pvt Ltd. and Anand Rathi Advisors Ltd. are the book-running lead managers for issue.

Outlook:

Crizac, operates in a very fragmented industry consisting of many informal players. Over the years, it has built a niche in providing services to students opting for international education.

Within a short period, it has built a presence in UK and UAE, aiding in market reach and service delivery. Led by its reach and diversified base of relations with universities, its revenue and profit has grown at 76.0% and 17.9% CAGR between FY23-25.

The company’s Ebitda margin has diluted sharply from 38.2% in FY23 to 25.1% in FY25, led by contraction in gross margins. Crizac’s initial issue is priced at 28.0 FY25 EPS, which is appears fairly valued, on comparing with global peer group median valuation of 23.4x FY25 EPS.

We assign a “Neutral” rating to the initial issue of the Company.

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