IPO Note : Crizac Limited by Nirmal Bang Ltd
BACKGROUND
Crizac Ltd is a B2B education platform for agents and global institutions offering student recruitment solutions of higher education mainly in UK, Canada, Republic of Ireland, Australia and New Zealand (ANZ). Almost 95% of revenues are derived from UK as a result of Co’s strong relationships built over time. Co’s propriety technology platform automates and manages application tracking, communications, analystics and agent onboarding which has helped Crizac maintain a lean headcount of ~310 while processing a staggering 7,11,000+ student applications during FY23-25. Crizac has a strong network of ~ 10,362 agents (3948 active agents) across 75+ countries and 173 university partnerships. Company plans to foray into newer markets and offer more services which will be the growth drivers in future.
Details of the Issue:
Total issue of Rs. 860 Cr, consists of only offer for sale of 3.51 crore shares and funds will not be utilized by the Co.
Investment Rationale:
1. Long standing relationships with esteemed global institutions and deepening agent network. 2. Expanding geographical footprint along with service diversification. 3. Inorganic growth to foray into B2C (i.e., catering directly to the student population without an agent in between) business model. 4. Improved financials.
Valuation and Recommendation:-
Crizag is a well-established player in student enrollment space especially in UK and Canada backed by its proprietary technological platform. Company now has plans to foray into US and other prominent markets with wider range of services. Revenues/ EBIDTA of the Co have grown at a CAGR of 33%/41% during FY23-25. Co has a negative working capital and asset light model and would benefit from the growing thrust for global higher education amongst young population amidst huge digitization demand. IPO at higher price band seems fully priced at 28x its FY25 earnings, however, Co’s niche international education focus and higher ROE provides cushion and we recommend ‘Subscribe’ to the issue for long term perspective.
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SEBI Registration number is INH00000176
