Crizac's Rs 860-crore IPO subscribed 45% on Day 1: Should you apply?

Crizac partners with universities in UK, Canada, Ireland, Australia, and New Zealand

The Rs 860-crore IPO of Crizac opened for subscription on July 2. The maiden public issue of the Kolkata-based education company was subscribed 46 percent on its first day of bidding.

Crizac IPO received bids for nearly 1.18 crore shares, as against the offer size of 2.58 crore shares, according to data on NSE. Retail investors booked 59 percent of their reserved portion, while Non-Institutional Investors (NII) subscribed 62 percent of their quota so far. Qualified Institutional Buyers (QIB) booked 9 percent of their reserved portion.

Key things to know about Crizac IPO

Crizac has launched its IPO to raise around Rs 860 crore through an offer for sale of shares by its promoters. The IPO will remain open for subscription from July 2 to July 4, and the allotments will likely be announced on July 7. The shares are scheduled to make their stock market debut on BSE and NSE on July 9.

The company has set a price band of Rs 233-245 per share for its maiden share sale. Investors can bid for a minimum of 61 shares, requiring an investment of Rs 14,945, and in multiples thereafter.

Crizac IPO GMP:

Ahead of listing, the unlisted shares of the company were trading with a grey market premium (GMP) of over 13 percent over its IPO price at Rs 277 apiece in the grey market, according to data on Investorgain.

Should you apply for Crizac IPO?

Analysts held mixed views about the IPO. Bhavik Joshi, Business Head at INVasset PMS, advised investors to take a 'wait and watch' approach. "Crizac’s IPO brings to market a niche, asset-light B2B education platform with global exposure and robust profitability metrics—30%+ ROE and EBITDA margins above 25%. Yet, the fact that this is a pure OFS with no capital infusion, priced at 28x FY25 earnings and 8.5x book value, leaves little room for valuation comfort. While scale and agent network expansion are commendable, the business is still linked to cyclical flows of international student mobility, which could face headwinds amid evolving visa norms and macro uncertainty in key geographies," he said.

"Edtech and education-linked models haven’t been wealth creators in Indian public markets so far, and Crizac’s modest Day 1 subscription seems to reflect that memory. For long-term investors, this is a differentiated play—but not without risks. A wait-and-watch approach could be more prudent, allowing time to evaluate post-listing price discovery and quarterly execution before meaningful allocation," he added.

Choice Equity Broking recommended investors to subscribe to the IPO. "In a competitive space alongside players like IDP, ApplyBoard, and Leap Scholar, Crizac offers a differentiated, credible, and proven model," it said.

Geojit Financial Services also recommended investors to subscribe to the public issue, with a medium- to long-term investment perspective. “Crizac Ltd. is a B2B education platform that facilitates international student recruitment for global higher education institutions. Established in 2011, Crizac partners with education agents and universities worldwide to deliver comprehensive recruitment solutions. Headquartered in Kolkata, India, Crizac also maintains co-primary operations in the United Kingdom, which contributes approximately 95% of its total revenue,” the firm said.

SMC Global however noted the risks in the IPO, and cautioned investors. “This IPO offers exposure to the fast-growing global student recruitment sector, backed by strong institutional partnerships, a wide agent network, and a tech-driven platform. Its expansion into high-potential markets and B2C services presents promising growth opportunities. However, high dependence on a few institutions and agents poses key risks. Investors with a moderate risk appetite and long-term outlook may consider applying,” it said.

Bajaj Broking highlighted Crizac’s financials. The Kolkata-based company reported a net profit of Rs 152.93 crore in FY25. “If we attribute FY25 earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 28.03,” it said.

A day before the IPO opened for public bidding, the international student recruitment solutions provider raised Rs 258 crore from 19 institutional investors through its anchor book on July 1. The company in its filing to exchanges said that it has finalised allocation of 1.05 crore equity shares to anchor investors at a price of Rs 245 per share.

Also read: Crizac Ltd IPO — Is this EdTech flotation worth the bet?

Marquee institutions like Allianz Global Investors, Pinebridge Global Fund, Societe Generale, and LC Pharos Multi Strategy Fund participated in anchor book of the B2B education platform that offers international student recruitment solutions to global institutions of higher education in United Kingdom, Canada, Republic of Ireland, Australia and New Zealand.

ICICI Prudential Mutual Fund, Shamyak Investment, Sunil Singhania's Aryabhata India Fund, Bandhan Mutual Fund, 360 ONE Equity Opportunity Fund, Carnelian Bharat Amritkaal Fund, Kotak Mahindra Life Insurance Company, and Axis Max Life Insurance, among others also invested in the company via anchor book.

Equirus Capital, and Anand Rathi Advisors are acting as the book running lead managers for the Crizac IPO.

Crizac will not receive any IPO money. All the funds, excluding issue expenses, will go to the selling shareholders - Pinky Agarwal, and Manish Agarwal.

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