CRIZAC LIMITED – About the Company
Incorporated in January 2011 as GA Educational Services Private Limited, Crizac (now) is India’s leading education platform that offers international student recruitment solutions to global institutions of higher education in the UK, Canada, the Republic of Ireland, Australia, and New Zealand (ANZ). The company has co-primary operations in London, UK, and has consultants in multiple countries, including Cameroon, China, Ghana, and Kenya. From Mar 21’ until Sep 30, 2023, while working with over 140 global higher education institutions, the company has processed over 3.82 lakh student applications. As of December 31, 2023, the company had over 5,300 agents globally registered on its proprietary technology platform, out of which 1,819 were active agents who had received payment during fiscal 2023.
CRIZAC LIMITED IPO Objectives
This issue is totally an offer for sale IPO and company will not receive anything from the proceeds. Offer size of this IPO is 1000 cr by the selling promoters. Out of Rs. 1000 cr Pinky Agarwal will receive Rs. 841 cr and Manish Agarwal will receive Rs. 159 crores.
CRIZAC LIMITED IPO Details:
| IPO Open Date | To be Announced |
| IPO Close Date | To be Announced |
| Basis of Allotment | To be Announced |
| Listing Date | To be Announced |
| Face Value | Rs 2 per share |
| Price | To be Announced |
| Lot Size | To be Announced |
| Total Issue Size | Up to [●] Equity Shares |
| Aggregating up to Rs. 10,000.00 million. | |
| Fresh Issue | NIL |
| Offer For Sale | Up to [●] Equity Shares |
| Aggregating up to Rs. 10,000.00 million. | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not less than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
CRIZAC LIMITED IPO Issue Price & Size
According to the DRHP document, only the issue size of the Crizac Limited IPO is known, which consists of a Rs 1000 crore offer for sale by selling promoters. The issue prices haven’t been released and therefore will be updated as and when filed with the exchange.
CRIZAC LIMITED IPO Launch Date
Since the RHP hasn’t been filed yet, the launch date of the IPO is unknown. All the specified dates, including the launch date, issue size, and price, will be revised as and when the tentative dates are rolled out.
CRIZAC LIMITED Financial Statements:
| Particulars | 6-Month ended Sep 30, 2023 | FY 2023 | FY 2022 | FY 2021 |
| Revenue from operations | 1636 | 2740.98 | 1200.7 | 287.79 |
| Other income | 614.68 | 448.72 | 32.29 | 10.51 |
| Total Income | 2250.68 | 3189.7 | 1232.99 | 298.3 |
| Cost of Services | 786.97 | 1138.83 | 164.02 | 3.74 |
| Employee benefits expense | 24.1 | 40.43 | 17.66 | 18.83 |
| EBITDA | 586.67 | 1047.8 | 865.17 | 262.13 |
| EBITDA Margin (in %) | 35.86 | 38.23 | 72.06 | 91.09 |
| Finance costs | 0.06 | 1.15 | 0.23 | 0.05 |
| Depreciation and amortisation expense | 12.95 | 21.53 | 9.92 | 2.45 |
| Other expenses | 238.26 | 513.92 | 153.85 | 3.09 |
| Profit after tax | 885.86 | 1101.09 | 661.57 | 200.44 |
| PAT Margin (in %) | 38.36 | 34.52 | 53.66 | 67.19 |
| Basic EPS | 5.06 | 6.29 | 3.78 | 1.15 |
| Diluted EPS | 5.06 | 6.29 | 3.78 | 1.15 |
| ROE (in %) | 28.49 | 50.06 | 62.49 | 55.58 |
CRIZAC LIMITED Promoters & Shareholding of the Company
There are three promoter of Crizac Limited
- Vikash Agarwal
- Pinky Agarwal
- Manish Agarwal
As per the files DRHP document, 3 promoters in total hold about 80.48 % of the paid-up Equity Share capital of the Company
| S. No. | Name of the Promoter | No. of Equity Shares | % of the pre Offer Equity Share capital (%) |
| 1 | Dr. Vikash Agarwal | 52,23,484 | 2.99% |
| 2 | Pinky Agarwal | 8,21,18,336 | 46.93% |
| 3 | Manish Agarwal | 5,34,82,885 | 30.56% |
| Total | 14,08,24,705 | 80.48% | |
Why Invest in CRIZAC LIMITED IPO?
While investing in an IPO-bounded company, one should check their fundamentals that help an investor to Visions Company’s financial performance and competitive strength which at last drives its business growth. Fundamental analysis apart from financial and competitive strength, also help you to know the risk factors that can affect the business operations and future prospects of the company. After evaluating the variables such strength weakness, financials, you may strike a balance and decide to invest or not invest in an IPO.
Strengths:
Leading provider of international recruitment solutions
The company has built strong relationships with global institutions and is among the leading education platform that provides international student recruitment solutions to global institutions of higher education. The company is one of the largest student recruitment solutions providers from India into the United Kingdom. Since its operations began in Fiscal 2011, the company has processed over 3.82 lakh student applications while working with over 140 global institutions of higher education.
| Country | 6-Mon ended Sep 30, 2023 | FY 2023 | FY 2022 | FY 2021 |
| India | 86041 | 1,52,539 | 68260 | 32630 |
| Asia (excluding India) | 11223 | 9,971 | 356 | 84 |
| Africa | 10839 | 9,728 | 279 | 3 |
| Others | 258 | 701 | 279 | 28 |
| Total | 108361 | 1,72,939 | 68973 | 32475 |
Scalable proprietary technology platform
Their proprietary technology platform facilitates seamless communication between over 5,300 agents globally and global institutions of higher education. The platform also helps us analyze and track applications across various parameters, enabling comparisons across agents and analyzing historic trends of applications by global institutions of higher education.
Deepening and augmenting our agent network in India and globally
The company aims to continue its growth by deepening its existing agent network and expanding its network in India and globally. Company plans to expand its agent network in China, as India and China have the highest number of students studying abroad across various undergraduate and post-graduate courses.
Diversify our service offerings
The company in future plans to diversify its service offerings and include wider range of services complimenting to primary service provided order to make it as a one stop shop for students. The company is considering entering into tie-ups with financial institutions, property management services, and accommodation providers across its focus geographies. These services are considered 'value-added services' and will broaden the target audience and provide a deeper connection with them, especially when entering the B2C business model.
Foray into B2C business model
The company through this IPO wants to enhance its brand profile which will help them in setting up direct business to client (B2C) relation. B2C business model will cut the middle man, establish direct relation between student population, leading to increase revenue, better service proposition and reduce reliance on the agent network.
Risk Factors
Heavily dependent on few global institutions for revenue
Crizac revenue from operations is primarily derived from a limited set of global institutions of higher education.
In below mentioned table, companies revenue from operations from our top 3, 5 and 10 global institutions of higher education is shown.
| Particular | 6-Mon ended Sep 30, 2023 | FY23 | FY22 | FY21 |
| Top 3 global institutions of higher education | 81.05% | 63.81% | 57.41% | 51.02% |
| Top 5 global institutions of higher education | 85.71% | 72.90% | 65.42% | 60.52% |
| Top 10 global institutions of higher education | 90.43% | 82.39% | 76.31% | 74.81% |
Heavily dependent on agents
Business model of the company is established and maintained with the help of over 5,300 registered agents in India and globally. These agents are critical to business in sourcing aspiring students looking for higher education overseas.
The percentage of revenue from operations from the top 3, 5, and 10 agents during the period is shown below.
| Particular | 6 Mon ended Sep 30, 2023 | Fiscal 2023 | Fiscal 2022 | Fiscal 2021 |
| Top 3 agents | 6.94% | 8.32% | 21.46% | 7.38% |
| Top 5 agents | 10.54% | 10.92% | 23.99% | 11.07% |
| Top 10 agents | 16.32% | 14.80% | 28.66% | 16.26% |
Payments to agents in the 6 months ended Sep 30, 2023, FY23, FY22, and FY21 were Rs. 176.5 cr, Rs.307.6 cr, Rs. 152.3 cr, and Rs. 76.9 cr, constituting 67.16%, 65.04%, 57.81%, and 69.28% of revenue from operations.
Revenue concentrated to certain geographical locations
The company's revenue is dominantly sourced from a few geographies, which can be divided based on the location of global higher education institutions.
| Country | 6 Mon ended Sep 30, 2023 | Fiscal 2023 | Fiscal 2022 | Fiscal 2021 |
| UK | 2555.18 | 4558.76 | 2456.13 | 941.5 |
| Canada | 49.85 | 127.48 | 126.88 | 70.34 |
| Republic of Ireland | 2.16 | 17.45 | 35.03 | 55.47 |
| Others | 21.67 | 26.05 | 17.31 | 43.58 |
| Total | 2628.86 | 4729.74 | 2635.35 | 1110.89 |
(in Rs. million)
Regulations in relation to VISA could adversely affect business
Company as well as students is humility relined on student visa for enrolling them into higher education institutions. Any inter country confront or changes in norms could negatively impact the company's business operations and future business prospects.
CRIZAC LIMITED IPO Grey Market Premium (GMP)
GMP is the premium price paid over the IPO issue price. This premium is seen from speculator or trader view, that they are ready to pay in the grey market. GMP is an unofficial ecosystem that is determined in the grey market and keeps fluctuating as per the demand and supply of the shares in the primary market. However, GMP only should be not considered as a reliable factor to determine the listing price of an IPO-bounded company, as there are various factors that affect the stock market and individual stocks.
Also Read: What are the Top Factors Affecting the Stock Market in India
The DRHP has only been filled with the SEBI and no further news on issue launch date is present in market. As and when the RHP is filed and date of IPO comes near, grey market premium price discovery will be made available through online sources.
How to Apply for CRIZAC LIMITED IPO?
If you choose the best discount brokers in India like Moneysukh, you can easily apply in the Crizac Limited IPO or invest in any listed companies in the secondary market. You just need to open a trading account and demat account to apply in the IPOs, or do trading and investing in the stock market through the best trading platform at Moneysukh.
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Also Read: Things to Know Before Starting Forex Trading & How to Start
Steps to Apply for Crizac Limited IPO:
Step 1: Wait for the date Crizac Limited IPO to open for online bidding.
Step 2: Now browse the trade.moneysukh.com and log in with your User ID & password.
Step 3: Here you need to find the IPO section and click onCrizac Limited IPO.
Step 4: Now just fill in the required details like price, quantity, and so on.
Note: While applying in any IPO, make sure to bid at the cutoff price before submitting your application.
Step 5: Finally make the payment and then submit your IPO application successfully.
How to Check Crizac Limited IPO Allotment Status?
Apart from Moneysukh, you can also use stock exchange websites like BSE or NSE to check the Crizac Limited IPO allotment status. Checking the allotment status is possible only after the closing of the bidding and the basis of the allotment date arrives. You can use your PAN card details and IPO application number to check the Mobikwik IPO allotment status.
Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh
However, if the IPO is oversubscribed in all the categories including retail and HNI, then there is less chance of getting the allotment of shares. But if you follow the investing tips while applying for in IPO, you can improve your chances of allotment in the IPO.
Also Read: How to Increase the Chances of IPO Allotment
If you have not been allotted any share, your IPO application money will be refunded into your bank account or the fund will be unblocked if applied through ASBA. If you have allocated any share in the allotment, then it will be transferred into your demat account before the listing that you can sell to book profits or keep from the long-term investment viewpoint.
Also Read: What to Know Before Investing in Stocks: 10 Things to Consider
