Crizac Limited has launched its initial public offering (IPO), aiming to raise ₹860 crore through a complete offer for sale (OFS). The company, known for its services in the international education sector, is attracting investor attention due to its strong growth, asset-light model, and rising demand for global education platforms. But is this IPO worth bidding for? Here's a detailed look at the company, its IPO structure, market trends, and investment potential.
Crizac is a B2B platform that connects international universities with student recruitment agents. It helps students apply to top universities in countries like the UK, Canada, Ireland, Australia, and New Zealand. Crizac acts as a middleman, helping educational institutions reach students from over 75 countries, especially India.
The company uses a tech-driven model to simplify the student application process. In the financial year 2025, Crizac processed over 275,000 student applications, with around 60% coming from India. This highlights its dominant position in the Indian outbound education space.
One of the biggest advantages of Crizac’s business is that it doesn’t require heavy infrastructure. It’s an asset-light model, which means the company can grow quickly without large capital expenses. Crizac also enjoys high profit margins and is currently debt-free, making its financial position strong.
Crizac has shown impressive growth in recent years. Its revenue jumped from ₹274 crore in FY23 to ₹849 crore in FY25. During the same period, net profit increased from ₹110 crore to ₹152 crore. The company has maintained solid margins, with a net profit margin of around 18% and an EBITDA margin of 25%.
Such growth shows that Crizac has not only scaled its operations effectively but also managed its costs well. This financial strength is one of the key reasons investors are considering its IPO seriously.
However, there are a few risks as well. Nearly 95% of the company's revenue comes from the UK. This makes it heavily dependent on just one region. Any changes in visa rules or international education policies in the UK could significantly impact its business. Also, a large portion of its income comes from a limited number of institutions and agents, which increases concentration risk.
The Crizac IPO opened for subscription on July 2, 2025, and will close on July 4, 2025. The price band is set between ₹233 and ₹245 per share. Investors can apply for a minimum of one lot, which consists of 61 shares. This means the minimum investment needed is about ₹14,945 at the upper price band.
The total IPO size is ₹860 crore, and it is completely an offer for sale. This means the company itself will not receive any funds from the IPO. Instead, the existing promoters and shareholders are selling part of their stake. The money raised will go to them, not into Crizac’s business.
The shares are expected to be allotted on July 7, and they will be listed on the stock exchanges on July 9. The company already raised ₹258 crore from anchor investors a day before the issue opened. This included participation from several well-known domestic and global funds, which has added credibility to the offering.
On the first day of the IPO, the issue was subscribed around 46% overall. Retail investors showed good interest, with their portion getting subscribed by 30%. Non-institutional investors subscribed around 19%, while qualified institutional buyers (QIBs) showed limited activity.
By the second day, retail and non-institutional categories had seen more traction, while the QIB portion remained under-subscribed. Final day activity is expected to be stronger, especially from institutional buyers who typically wait until the last day to place their bids.
Another factor indicating market interest is the Grey Market Premium (GMP). GMP is the price at which IPO shares are trading unofficially before listing. For Crizac, the GMP started at around ₹20 and climbed up to ₹39, suggesting a possible listing price of about ₹284 per share. This indicates a 16% premium over the upper price band, reflecting positive investor sentiment.
At the upper end of the price band, Crizac is valued at around 28 times its FY25 earnings per share. This puts it in line with similar companies in the education and B2B service sectors. For example, IndiaMART, a listed Indian company with a somewhat similar model, trades at comparable earnings multiples.
Analysts have described Crizac’s valuation as fair. It isn’t too expensive, considering the company’s strong growth, healthy margins, and future potential. However, some experts have also pointed out that since this is a complete offer for sale, there’s no new capital being infused into the business. This limits the potential for short-term expansion or investment using IPO proceeds.
Brokerage firms have offered mixed opinions. Some recommend subscribing for the medium to long term due to the company’s fundamentals and strong cash flow. Others have expressed caution, highlighting risks like heavy revenue concentration in the UK and dependence on a few clients and agents.
The short-term performance of Crizac’s shares after listing will largely depend on market sentiment and institutional investor interest. If the GMP trend holds, a positive listing can be expected. However, stock market volatility, global interest rate movements, and regulatory updates in key study destinations could impact sentiment.
In the long run, Crizac’s ability to diversify into other regions such as the US, and its plans to enter the B2C education space, will be important. If the company manages to reduce its dependency on the UK and adds more universities and agents globally, its growth can become more stable and predictable.
Crizac presents a unique opportunity to invest in the booming international education sector. The business has shown strong growth, generates healthy profits, and has no debt on its books. Its tech platform and large agent network give it a competitive edge in the market.
However, the IPO comes with some concerns. It is entirely an offer for sale, so the company won’t get any new funds. There is also high concentration risk due to the UK being its primary market. Still, the fair valuation and market interest, shown by the GMP, suggest that it could be a good opportunity for those looking at the education sector.
For investors with a medium- to long-term view, Crizac could be a good addition to a diversified portfolio. Its success after listing will depend on how well it handles its regional exposure, expands globally, and manages changing education trends. The IPO seems promising but should be approached with a clear understanding of both its strengths and risks.