Crizac’s Rs 860-Crore IPO to Open on July 2: Should You Subscribe to This B2B Education Platform?

Price band set at Rs 233–245 per share; IPO opens tomorrow with July 4 as the last date for subscription and listing slated for July 9 on NSE and BSE

About the Issue:

Crizac Limited, a B2B education-tech platform based in Kolkata, is all set to launch its Rs 860-crore Initial Public Offering (IPO) on July 2, 2025. The issue, which is entirely an offer-for-sale (OFS) by the promoters, will close on July 4. The anchor book for institutional investors will open a day earlier, on July 1.

The IPO comprises 3.51 crore equity shares offered by promoters Pinky Agarwal and Manish Agarwal, who will offload shares worth Rs 723 crore and Rs 137 crore, respectively. Crizac has fixed a price band of Rs 233–245 per share, which pegs its expected market capitalisation at around Rs 4,287 crore at the upper band.

Founded as a platform focused on international student recruitment, Crizac facilitates admissions into institutions across the United Kingdom, Canada, Ireland, Australia, and New Zealand. Notably, the UK alone contributed nearly 95 per cent of its revenue in FY25. In the same fiscal, Crizac processed 2.75 lakh student applications, up 5.1 per cent year-on-year.

On the financial front, Crizac reported robust performance in FY25, with revenue growing 33.8 per cent to Rs 849.5 crore and net profit rising 28.6 per cent to Rs 152.9 crore.

Retail investors can apply for a minimum of one lot comprising 61 shares, requiring an investment of Rs 14,213, or Rs 14,945 if bidding at the upper end. For small non-institutional investors (sNII), the minimum investment is Rs 2,09,230, while for big NIIs (bNII), it is Rs 10,01,315.

The IPO allotment is expected on July 7, with shares credited by July 8 and listing scheduled for July 9 on both NSE and BSE. Equirus Capital and Anand Rathi Advisors are acting as book-running lead managers, while MUFG Intime India Pvt Ltd is the registrar.

See the issue details below.

Objects of the Issue and Promoter Details

Crizac’s upcoming IPO is a pure Offer for Sale (OFS) amounting to Rs 860 crore. As per the Red Herring Prospectus (RHP) filed on June 25, the company will not receive any proceeds from the issue, since the entire offering comprises shares being sold by the promoters.

Among the selling shareholders, Pinky Agarwal will offload shares worth Rs 723 crore, while Manish Agarwal will divest shares worth Rs 137 crore. Since this IPO is entirely an OFS, all proceeds will go directly to the selling promoters, and none of the funds will be infused into the company for business expansion or operational purposes.

Company Profile

Crizac Limited operates as a B2B education-tech platform that specialises in international student recruitment for higher education institutions across key destinations such as the United Kingdom, Canada, Republic of Ireland, Australia, and New Zealand. The company's primary strength lies in facilitating student recruitment from India to the United Kingdom, supported by deep-rooted partnerships with British universities and colleges.

As of March 2025, Crizac had processed over 7.11 lakh student enrolment applications and partnered with more than 173 global higher education institutions. Its global operations are powered by a wide-reaching network of over 10,362 registered agents on its proprietary digital platform, of which 3,948 were classified as active agents during FY25. This includes 2,237 active agents in India and 1,711 agents—accounting for nearly 43.33 per cent—spread across 39 countries including the UK, Nigeria, Pakistan, Bangladesh, Nepal, Sri Lanka, Cameroon, Ghana, Kenya, Vietnam, Canada, and Egypt.

Industry Outlook 

The global education market, valued at around USD 6 trillion in 2024, is projected to grow to USD 7.4 trillion by 2030. Within this, higher education is expected to reach USD 2.4 trillion by 2030, up from USD 1.9 trillion in 2024. International student mobility remains a key growth driver, with over 8 million students expected to be studying abroad by 2030, driven by sustained demand for global degrees despite disruptions like the COVID-19 pandemic.

India is a significant contributor to this trend. The number of Indian students pursuing higher education overseas stood at 1.48 million in 2023 and is projected to rise to 2.5 million by 2030, growing at a CAGR of 7.8 per cent. Key destinations include the US, UK, Australia, and Canada. Rising disposable incomes, aspirations for global careers, and access to specialized courses continue to fuel outbound student mobility from India.

The UK, a core market for Crizac, is forecast to generate over USD 60 billion in education revenue in 2024–25. International students—who pay nearly double domestic fees—are crucial to UK university finances. Inbound international students rose from 550,000 in 2020 to 760,000 in 2024 and are expected to grow at a 3.6 per cent CAGR through 2030.

Financials 

Crizac demonstrated robust growth in FY25. The company’s revenue surged to Rs 849.49 crore, marking a 33.8 per cent increase from Rs 634.87 crore in FY24. Net profit rose to Rs 152.93 crore in FY25, up from Rs 118.90 crore a year earlier—reflecting healthy operational performance and strong demand in the international student recruitment space.

(Source – Company’s RHP)

Balance Sheet Snapshot

(Source – Company’s RHP)

Key Metrics

(Source – Company’s RHP)

Crizac Limited has demonstrated robust revenue growth over the past three years, with its topline increasing from ₹472.97 crore in FY23 to ₹849.49 crore in FY25, reflecting a healthy CAGR of 21.56%. However, this sales momentum is accompanied by a disproportionately sharp rise in trade receivables, which have surged from ₹26.94 crore in FY23 to ₹256.4 crore in FY25—translating into an alarming CAGR of 111.92%. This steep increase in receivables points to a working capital buildup, largely attributable to the nature of the company’s business, where payments from global educational institutions are realized after a gestation period of 15 to 90 days. Despite the high receivables, Crizac has managed to significantly improve its cash generation from operations, with cash flow rising from ₹70.26 crore in FY23 to ₹187.27 crore in FY25. Notably, the company turned around its cash conversion metric from a negative -19.96 in FY23 to -1.8 in FY25, suggesting a gradual improvement in the efficiency of converting profits into cash.

Key ratios

 (Source – Company’s RHP)

Listed Peer Comparison 

Crizac Limited has benchmarked itself against IndiaMART Intermesh Ltd and IDP Education Ltd as proxy listed peers, despite differences in their core operations. IndiaMART, a diversified B2B platform, shares Crizac’s asset-light, platform-driven model and trades at similar valuation multiples (P/E 29.5, P/B 7.14, Market Cap to Sales 11.2). In contrast, IDP Education—listed in Australia and directly involved in international student services like Crizac—trades at lower valuations (P/E 11, P/B 1.76, Market Cap to Sales 1.10) due to its traditional counseling-based approach. Crizac commands a premium valuation (P/E 28, P/B 8.47, Market Cap to Sales 8.09), supported by its debt-free structure, exceptional return ratios (ROE 58.4%, ROCE 92.8%), and fast-growing, tech-enabled student recruitment platform. While unlisted players such as KC Overseas, Leap Scholar, and Leverage Edu operate in similar domains, Crizac stands out in the listed space for its superior capital efficiency and growth potential in the cross-border education services sector.

SWOT Analysis

Strengths
Crizac Limited operates as an established B2B education platform specializing in international student recruitment for higher education institutions in the UK, Canada, Ireland, Australia, and New Zealand. Its core strength lies in deep-rooted partnerships with UK universities, which drive most of its revenue. As of March 2025, it had over 10,000 registered agents and processed 7.1 lakh applications globally. Its proprietary technology platform enhances scalability by offering real-time updates, automation, and analytics. The platform supports efficient filtering of courses, improving agent productivity. These strengths create a competitive moat, allowing Crizac to scale rapidly while maintaining strong institutional relationships.

Weaknesses
Despite its scale, Crizac lacks direct listed peers in India or globally, making valuation benchmarking difficult for investors. The business is heavily reliant on its material UK subsidiary, which was only recently acquired, and retrospective financials are based on pro forma consolidation. Its revenue is geographically concentrated, especially in the UK, exposing it to regional risks. Moreover, the company faces challenges in intellectual property protection, as its logo isn’t trademarked and its 'CRIZAC' word mark applications have been objected to in India. These factors introduce uncertainty around brand protection, legal vulnerabilities, and overdependence on limited geographies and entities.

Opportunities
Crizac has ample room to diversify beyond admissions by offering value-added services like student loans, visa processing, forex solutions, and housing assistance. It also plans to expand into the direct-to-consumer (B2C) model via strategic acquisitions, which could unlock new growth avenues. The growing number of Indian students going abroad, projected to touch 2.5 million by 2030, presents a strong tailwind. Moreover, Crizac aims to deepen its presence in the US and other ANZ countries while expanding its agent base. These moves could significantly widen its market coverage, boost profitability, and enhance brand visibility across international education markets.

Threats
Crizac operates in a highly competitive and fragmented market with both Indian and global players like ApplyBoard, SI-UK, Leap Scholar, and Leverage Edu. These companies often compete on pricing, partnerships, and tech features, which can pressure Crizac’s market share and margins. Additionally, its revenue concentration in specific regions makes it vulnerable to regulatory changes, visa restrictions, or geopolitical tensions. Any economic slowdown in India or key operating geographies could impact student mobility and discretionary spending on education. External shocks like pandemics or global recessions also pose significant risks to the international education ecosystem and Crizac’s business performance.

Outlook and Valuation

Crizac Limited operates in the growing global higher education consultancy space, with a strong presence in student recruitment services across multiple geographies. Its asset-light model, long-standing institutional relationships, and expansive network of over 10,000 registered agents give it a competitive edge in this fragmented industry. The company has shown healthy revenue growth in recent years, though a significant portion of its profits remains tied up in trade receivables, impacting cash flow generation. Efficient receivables management will be essential to unlock value and sustain long-term profitability.

At the upper price band of ₹245, Crizac is valued at a P/E of 28x and Market Cap to Sales of 8x on FY25 earnings (post-issue basis). When compared to listed peers like IndiaMART (P/E 29.5, Market Cap/Sales 11.2) and IDP Education (P/E 11, Market Cap/Sales 1.1), Crizac’s IPO appears fairly priced, supported by high return ratios and growth visibility. However, the company operates in a sensitive space influenced by global macroeconomic conditions, immigration policies, and geopolitical developments, which could impact student flows and demand for overseas education.

Looking ahead, Crizac’s growth strategy includes expanding its agent network, diversifying services beyond admissions, and tapping into the direct-to-student (B2C) model, possibly through acquisitions. These initiatives, combined with rising demand for international education and increasing disposable income among India’s middle class, offer a long runway for future expansion. However, execution risks, rising competition from tech-driven global players, and region-specific revenue dependence remain key concerns.

Recommendation:
Risk-taking investors with a medium to long-term horizon may consider investing in the IPO, given Crizac’s scalable model and future growth plans, though near-term challenges around receivables and global headwinds warrant caution.