SEBI Returns Draft IPO Permits Of Student Recruitment Provider Crizac

SEBI Returns Draft IPO Permits Of Student Recruitment Provider Crizac

The move is likely to delay the Kolkata-based company's initial share sale

The Securities and Exchange Board of India (SEBI) has returned the draft documents of student recruitment solution provider Crizac Ltd, which was to float Rs.1,000 crore Initial Public Offering (IPO).

The proposed IPO was an Offer For Sale (OFS) by promoters, Pinky Agarwal and Manish Agarwal, with no fresh issue component. It included the sale of Rs.841 crore equity shares by Pinky and Rs.159 crore by Manish.

Equirus Capital and Anand Rathi Advisors are the book-running lead managers to the issue.

The company filed its Draft Red Herring Prospectus (DRHP) with SEBI in April. However, on 15 July, the markets regulator returned the company's offer document without providing any reason.

Crizac offers international student recruitment solutions to global institutions of higher education in the United Kingdom, Canada, the Republic of Ireland, Australia and New Zealand.

Having established partnerships with leading universities in the UK, it is a major player from India to the UK, holding a 13 percent market share based on the number of Indian students pursuing higher education in the UK in 2023.

In the past three years, Crizac facilitated student enrolment applications from over 72 countries through registered agents on its technology platform. It processed over 3.82 lakh applications and collaborated with over 140 global universities.

During the fiscal year 2023, Crizac's pro forma consolidated revenue from operations rose 79.5 percent to Rs.472.97 crore from the previous year’s Rs.263.53 crore. After tax, its profit grew 65.50 percent to Rs.112.14 crore for the Financial Year 2023 from Rs.67.76 crore in the preceding year.