Student recruitment solutions provider Crizac files draft papers for Rs 1,000-cr IPO

Student recruitment solutions provider Crizac has filed draft papers with the capital markets regulator Sebi to raise Rs 1,000 crore through initial public offering.

The IPO comprises only an offer-for-sale (OFS) by promoters with no fresh issue component.

Promoters Pinky Agarwal and Manish Agarwal will be selling equity shares worth Rs 159 crore and Rs 841 crore through OFS.

It is 100 percent promoters owned company, while Vikash Agarwal, his wife Pinky Agarwal and brother Manish Agarwal are the main promoters of the organisation.

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Crizac offers international student recruitment solutions to global institutions of higher education in United Kingdom, Canada, Republic of Ireland, Australia and New Zealand. It clocked 66.4 percent on-year growth in standalone net profit at Rs 110.1 crore in FY23 despite sharp drop in operating margin, driven by healthy revenue growth and higher other income.

Standalone revenue from operations for FY23 at Rs 274.1 crore increased by 128.3 percent over previous year. EBITDA during the same period rose by 21.1 percent to Rs 104.8 crore, but margin dropped significantly to 38.2 percent from 72.05 percent due to higher cost of services.

Net profit for April-September period in current financial year (FY24) came in at Rs 88.6 crore on revenue of Rs 163.6 crore.

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Having strong relationships with global institutions of higher education in the United Kingdom, Crizac was the one of the largest student recruitment solutions providers from India into the United Kingdom with a market share of close to 13 percent in terms of number of students going from India to the UK in 2023.

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