Crizac Files for IPO to Raise ₹1,000 Crore

28 Mar 2024 , 11:31 AM

Crizac, a prominent provider of student recruitment solutions, has submitted draft papers with the capital markets regulator Sebi, aiming to raise ₹1,000 Crore through an initial public offering (IPO).

The IPO will consist solely of an offer-for-sale (OFS) by promoters, with no fresh issue component. Promoters Pinky Agarwal and Manish Agarwal will collectively sell equity shares worth ₹159 Crore and ₹841 Crore, respectively, through the OFS. Notably, Crizac is a 100% promoter-owned company, with Vikash Agarwal, his wife Pinky Agarwal, and brother Manish Agarwal serving as the main promoters.

Crizac specializes in offering international student recruitment solutions to prestigious institutions of higher education across various countries, including the United Kingdom, Canada, Republic of Ireland, Australia, and New Zealand. Despite facing a sharp decline in operating margin, the company achieved a remarkable 66.4% year-on-year growth in standalone net profit, reaching ₹110.1 Crore in FY23, driven by robust revenue growth and increased other income.

Standalone revenue from operations for FY23 surged by 128.3% to ₹274.1 Crore compared to the previous year. While EBITDA also experienced growth, rising by 21.1% to ₹104.8 Crore during the same period, the margin dropped significantly to 38.2% from 72.05% due to higher service costs.

In the current financial year (FY24), the company reported a net profit of ₹88.6 Crore on revenue of ₹163.6 Crore for the April-September period. With strong relationships established with global institutions of higher education, particularly in the United Kingdom, Crizac emerged as one of the largest student recruitment solutions providers from India, capturing close to 13% market share in terms of the number of students going from India to the UK in 2023.

Equirus Capital and Anand Rathi Advisors have been appointed as the book running lead managers for the IPO, indicating a significant step forward for Crizac in its journey towards capital market participation.