By Anupama Ghosh
Crizac Limited’s ₹860 crore initial public offering received a marginal response on Tuesday, with the issue getting 46 per cent subscription on the first day of bidding. The education consultancy firm’s shares are priced between ₹233 and ₹ 245 per share.
The retail investor segment showed moderate interest, with a 60 per cent subscription rate, while the qualified institutional buyers (QIBs) category recorded a 9 per cent subscription rate on day one. Non-institutional investors filled 62 per cent of their allocated portion. QIBs typically participate heavily on the final day of IPO bidding, which could boost overall subscription levels.
The Mumbai-based company, which facilitates international student recruitment for higher education institutions in the UK, Canada, Ireland, Australia and New Zealand, processed over 7.11 lakh student applications during the fiscal years 2023-2025. It works with more than 173 global institutions through a network of approximately 10,400 registered agents worldwide.
For fiscal 2025, Crizac reported revenue from operations of ₹849.49 crore and net profit of ₹152.93 crore. The company has shown consistent growth, with revenue expanding from ₹274.10 crore in fiscal 2023.
The IPO is entirely an offer for sale by existing shareholders, meaning the company will not receive any proceeds from the public offering. Post-IPO, promoter shareholding will reduce from 100 per cent to 79.94 per cent.
SMC Global Securities assigned a rating of 1.5 out of 5 to the issue, citing high dependence on a few institutions and agents as key risks. The brokerage noted that revenue from the top 3, 5 and 10 global institutions comprises 53 per cent, 60 per cent and 71 per cent, respectively, indicating significant concentration risk.
Bajaj Broking highlighted the company’s exposure to global uncertainties that could impact international education demand. The firm noted that visa policy changes, economic instability in source countries, and competition from improving local institutions pose threats to the business model.
At the upper price band of ₹245, the company is valued at a price-to-earnings ratio of 28.03 times based on fiscal 2025 earnings. The issue closes on July 4, with a tentative listing scheduled for July 9 on BSE and NSE.
The marginal opening response leaves room for improvement over the next two days, with market participants keeping a close watch on institutional participation patterns and overall subscription momentum.
Published on July 2, 2025