Shares of B2B education services platform, Crizac, made a healthy entry on the bourses, with the stock listing at a premium of 15% over its issue price. The stock listed at ₹281.05 on the NSE, as against its issue price of ₹245.
The double-digit listing gains were aligned with market expectations as the stock already commanded a near 17% premium in the grey market.
The company’s initial public offering (IPO), which opened from July 2-4, received an overwhelming response, being subscribed 59.81 times. Institutional interest was particularly strong, with qualified institutional buyers (QIBs) bidding for 134.35 times their allotted quota. Non-institutional investors subscribed 76.15 times, while retail investors took up 10.21 times the shares reserved for them.
Crizac raised ₹860 crore through the IPO, which was an entire offer for sale (OFS) by promoters Pinky Agarwal and Manish Agarwal. The company will not receive any proceeds from the issue, as the entire amount will go to the selling shareholders. Post-issue, the promoters' holding will reduce from the pre-IPO level of 80.48%.
Founded in 2011, Crizac operates as a B2B education platform that enables international student recruitment for higher education institutions across the UK, Canada, Ireland, Australia, and New Zealand. The company sources student applications from over 75 countries, using a broad network of agents to help universities expand their global reach.
On the financial front, Crizac reported revenue of ₹885 crore and a net profit of ₹153 crore for FY25, up from ₹763 crore revenue and ₹118.9 crore profit in FY24. The company expects to maintain operating margins around 25% going forward.
“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,” analysts at Bajaj Broking said.
Meanwhile, when attributed the FY25 earnings to its post-IPO fully diluted paid-up equity capital, then the asking price for Crizac stands at a P/E of 28.03, but based on FY24 earnings, the P/E stands at 36.35.
