Crizac Limited, a major player in international student recruitment solutions based in Kolkata, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO). The IPO aims to raise funds by offering shares for sale, with a face value of Rs 2 per equity share, totaling up to Rs 1,000 crore.
Offer Details
The IPO comprises entirely of an offer for sale, with the promoter selling shareholders planning to sell equity shares worth up to Rs 841 crore by Pinky Agarwal and up to Rs 159 crore by Manish Agarwal. Additionally, eligible employees will have a reservation for subscription.
Book-building Process
The offer will be conducted through the book-building process, with allocations as: up to 50 per cent for qualified institutional buyers, at least 15 per cent for non-institutional investors, and not less than 35 per cent for retail individual investors.
Market Presence
Crizac Limited has partnerships with leading universities in the UK and holds a market share of approximately 13.0 per cent of Indian students pursuing higher education in the UK in 2023. The company has reported a substantial growth and a 81.02 per cent Compound Annual Growth Rate (CAGR) in revenue from operations from Fiscal 2014 to Fiscal 2023.
Financial Performance
In Fiscal 2023, Crizac Limited's reported consolidated revenue from operations increased by 79.47 per cent to Rs 472.97 crore, with a profit after tax growth of 65.50 per cent to Rs 112.14 crore. For the six months ending September 30, 2023, revenue from operations stood at Rs 262.89 crore, with a profit after tax of Rs 89.61 crore.
Management of the IPO
Equirus Capital Private Limited and Anand Rathi Advisors Limited are the book-running lead managers, while Link Intime India Private Limited will serve as the registrar of the issue.
