Crizac Refiles IPO Papers with SEBI, Aims to Raise ₹1,000 Crore

Student recruitment solution provider Crizac is gearing up to raise ₹1,000 crore through an initial public offering (IPO). The Kolkata-based company refiled its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on November 18, 2024.

The IPO is structured entirely as an offer-for-sale (OFS) by the company's promoters. Pinky Agarwal will offload shares worth ₹841 crore, while Manish Agarwal will sell ₹159 crore worth of shares. As a result, Crizac will not receive any proceeds from the IPO. All funds will go to the selling shareholders.

This marks Crizac's second attempt at an IPO this year. The company had previously filed draft papers in March 2024, but SEBI returned them in July.

Crizac is a leading B2B education platform specializing in international student recruitment solutions. It connects global institutions of higher education with recruitment agents, focusing on markets such as the United Kingdom, Canada, Ireland, Australia, and New Zealand.

Since FY22, Crizac has processed over 5.95 lakh student applications and collaborated with more than 135 global educational institutions. The company also boasts a robust network of approximately 7,900 agents registered on its technology platform.

Crizac IPO reported strong revenue growth in FY24, with a 93.4% jump to ₹530 crore compared to ₹274 crore in FY23. However, its profit for FY24 grew modestly by 5.2%, reaching ₹116 crore compared to ₹110 crore in the previous fiscal. The company’s EBITDA rose 37.2% year-on-year to ₹143.8 crore in FY24, but its margin contracted sharply by 1,110 basis points to 27.1%, reflecting higher input costs. For the six months ending September 2024, Crizac reported a profit of approximately ₹62 crore on revenue of ₹291 crore.

In Conclusion

Crizac’s decision to refile its draft papers indicates its determination to tap into the capital markets despite earlier setbacks. The funds raised from the IPO will allow existing promoters to monetize their holdings, but the company will not directly benefit from the proceeds. With a proven track record in international student recruitment and strong revenue growth, Crizac has established itself as one of the key players in the education technology space. 

Earlier in July, SEBI had returned the draft documents of Crizac which were filed in April without providing a reason for it. This is Crizac’s second attempt to launch its IPO.