Crizac Ltd IPO: Should You Subscribe?

The initial public offering (IPO) of Crizac Ltd opened for subscription today and will close on Friday, July 4, 2025. Ahead of the launch, the grey market premium (GMP) climbed to Rs 25, indicating a 10% premium.

However, investors are advised to carefully consider both the opportunities and risks before subscribing. For a detailed review, see our comprehensive IPO analysis here.

Crizac IPO Details 

• Issue Details: Mainstream
• Offer for Sale: Rs 860 crore
• Price Band: Rs 233 – Rs 245
• Lot Size: 61 shares
• Listing Date: July 9, 2025

Overview of Crizac Ltd

Crizac is a B2B EdTech platform that connects education agents with global higher education institutions via its proprietary platform. Specializing in international student recruitment, primarily from India to the UK, Crizac partners with universities in the UK, Canada, Ireland, Australia and New Zealand.

Crizac sources applications from over 75 countries through a network of 10,362 registered agents. In FY25, it processed approximately 275,897 student applications across 173 universities. With a strong global network of over 10,000 registered agents, nearly 4,000 of whom were active in FY25 across 39+ countries, Crizac effectively facilitates student recruitment through strategic, long-term partnerships.

Crizac Key Strengths

• Solid Financial Performance: From FY23 to FY25, Crizac achieved a CAGR of 34% in operating revenue, 41% in EBITDA, and 17% in net profit, as per Proforma Consolidated Financial Information.
• Asset-Light Model: With no major costs for adding new universities or agents, Crizac operates an asset-light, high-leverage model. The firm is paid by universities first, then pays agents, creating a negative working capital business. It holds over Rs 300 crore in cash and cash equivalents as of FY25.
• Improving Margins: Crizac reported an EBITDA margin of 25.05% and a net profit margin of 17.28% in FY25, up from 11.44% and 15.57%, respectively. The firm also shows strong operational efficiency, with a Return on Equity (RoE) of 30.24% for FY25.

Crizac Risk Factors

• Geographic Concentration: Crizac is highly dependent on the UK, with over 95% of its revenue in FY25 derived from this region. Any adverse developments in the UK could significantly impact the company’s performance.
• Dependence on Key Clients: A large portion of Crizac’s revenue comes from a limited number of global higher education institutions. In FY25, the top 3, 5 and 10 institutions accounted for approximately 53%, 60% and 71% of operating revenue, respectively. Losing any of these key clients could negatively affect the business.
• Regulatory Risks: Changes in visa regulations or travel restrictions could disrupt operations. For instance, new UK visa norms, effective January 1, 2024, slowed growth, with applications rising just 5% YoY in FY25, down from 52% the previous year. Additionally, in May 2025, the U.S. Embassy and consulates in India paused scheduling new student visa appointments, which is particularly impactful for Indian students.

Final Thoughts: Should You Subscribe to Crizac’s IPO?

Crizac boasts a solid financial track record, supported by a strong balance sheet. The IPO is priced at a P/E multiple of 28x based on FY25 earnings, which appears reasonable given the company’s robust growth and scalable, asset-light business model.

However, there are significant concerns. The IPO does not raise fresh capital for the company and its revenue remains heavily reliant on a few sources, limiting its potential for near-term growth.

In FY25, 95% of Crizac’s revenue came from UK institutions. However, changes to UK visa norms from January 2024, have slowed growth (applications processed in FY25 grew just 5% YoY, a sharp decline from the previous year’s 52% growth).

Additionally, Crizac’s plans to expand into the US market could face challenges due to the higher study visa rejection rates compared to the UK, adding further uncertainty to the company’s growth prospects.

In conclusion, while Crizac may have long-term potential based on its established relationships, the near-term challenges are significant. Thus, it is advisable to stay on the sidelines until there is clearer indication of stable execution and sustained growth.

For a deep dive into other IPOs, explore: IPO Corner on Liquide