Crizac Ltd. IPO review (May apply)

•    The company is engaged in assisting students for higher education with global institutions.
•    The company has posted growth in its top and bottom lines for the reported periods.
•    Current shaky global situation may have impact on this company’s working.
•    Based on the recent financial data, the issue appears fully priced.
•    Well-informed Investors may park moderate funds for medium to long term.

ABOUT COMPANY:
Crizac Ltd. (CL) is a B2B education platform for agents and global institutions of higher education offering international student recruitment solutions to global institutions of higher education in United Kingdom, Canada, Republic of Ireland, Australia and New Zealand (ANZ). Student recruitment solutions from India into the United Kingdom is its strength as a result of strong relationships built over time with global institutions of higher education in the United Kingdom. (Source: F&S Report) For the Fiscals March 31, 2025, March 31, 2024 and March 31, 2023, it sourced applications for enrolment into global institutions of higher education from over 75 countries through agents globally who are registered on its proprietary technology platform. During the Fiscals 2025, 2024 and 2023, the company processed over 7.11 lakh student applications while working with over 173 global institutions of higher education. 

As of March 31, 2025 it had around 10,362 Registered Agents globally who are registered on our proprietary technology platform and during Fiscal 2025, it had 3,948 active agents (i.e., agents from whom the Company has received applications during Fiscal 2025) (Active Agents) comprising 2,237 Active Agents in India and around 43.33% Active Agents i.e., 1,711 Active Agents in over 39 countries overseas including United Kingdom, Nigeria, Pakistan, Bangladesh, Nepal, Sri Lanka, Cameroon, Ghana, Kenya, Vietnam, Canada and Egypt. Students and parents are increasingly recognizing the value of acquiring a global perspective, accessing world-class educational institutions, and experiencing diverse cultures (Source: F&S Report), and since commencement of its operations in Fiscal 2011, CL has worked with agent network to enable the students and parents in fulfilling such aspirations.

The company also works in close collaboration with global institutions of higher education, which has helped it in developing expertise and understanding of their recruitment preferences and develop bespoke strategies that reflect and highlight their unique goals and strengths. This has enabled CL to scale its business, and it has grown at a CAGR of 100.18% in terms of increase in revenue from operations in Fiscal 2015.

CL is based in India with co-primary operations in London, United Kingdom. In addition to extensive operations and employees in India, it has consultants in multiple countries including Cameroon, China, Ghana, and Kenya. As of March 31, 2025, it had a team of 368 employees and 12 consultants with extensive experience of the international educational landscape. 

As of March 31, 2025 it had around 10,362 Registered Agents globally who are registered on its proprietary technology platform. As per proforma consolidated data, the company has process 275897 students’ applications, it had 3948 active agents and 173 global institutions catered during FY25 against 262502, 2532 and 124 for FY24 respectively. Company’s top line includes 60% from domestic market and 40% from global market. 

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route secondary IPO of Offer for Sale (OFS) worth Rs. 860.00 cr. (approx. 35102040 equity shares at the upper cap). The company has announced a price band of Rs. 233 – Rs. 245 per equity shares of Rs. 2 each. The issue opens for subscription on July 02, 2025, and will close on July 04, 2025. The minimum application to be made is for 61 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE and NSE. The issue constitutes 20.06% of the post-IPO paid-up equity capital. Since this is a pure secondary offer, no funds are going to the company. This issue is to provide exit to some of its stakeholders and for the listing benefits.

The joint Book Running Lead Managers (BRLMs) to this issue are Equirus Capital Pvt. Ltd., and Anand Rathi Securities Ltd., while MUFG Intime India Pvt. Ltd., is the registrar to the issue. Equirus Securities Pvt. Ltd., and Anand Rathi Shares and Stock Brokers Ltd. are syndicate members.

Having issued initial equity shares at par, the company issued further equity shares at a fixed price Rs. 100 per share (based on Rs. 2 FV) in February and March 2012. The company also issued bonus shares in the ratio of 494 for 1 in February 2022, and 2.5 for 1 in November 2023. The average cost of acquisition of shares by the promoters/selling stakeholder is Rs. 0.00, Rs. 0.01, and Rs. 0.49 per share. 

Post-IPO, its current paid-up equity capital of Rs. 35.00 cr. will remain same as this is an OFS only. Based on the upper cap of the IPO price band, the company is looking for a market cap of Rs. 4287.07 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has (on a standalone basis) posted a total income/net profit of Rs. 318.97 cr. / Rs. 110.11 cr. (FY22), and (on a consolidated basis) posted total income/net profit of Rs. 658.62 cr. / Rs. 117.92 cr. (FY24), and Rs. 884.78 cr. / Rs. 152.93 cr. (FY25). 

For the last three fiscals, the company has (on a proforma consolidated basis) posted an average EPS of Rs. 7.70 and an average RoNW of 35.16 %. The issue is priced at a P/BV of 8.52 based on its NAV of Rs. 28.76 as of December 31, 2024, as well as on post-IPO NAV.

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. Based on FY24 earnings, the P/E stands at 36.35. Thus, the issue appears fully priced. 

The company has reported PAT margins of 34.52% (FY23), 17.90% (FY24), 17.28% (FY25), and RoE margins of 50.06%, 34.74%, 30.38%, respectively, for the referred periods.

DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It has already adopted a dividend policy in February 2024, based on its financial performance and future prospects.

COMPARISON WITH LISTED PEERS:
As per the offer document, the company has shown Indiamart Intermesh, and IDP Education, as their listed peers. They are trading at a P/E of 29.7, and NA (as of June 27, 2025). However, they are not truly comparable on an apple-to-apple basis.

MERCHANT BANKER’S TRACK RECORD:
The two BRLMs associated with the issue have handled 17 public issues in the past three fiscals, out of which 4 issues closed below for issue price on the listing date.