Crizac’s Rs 860 crore initial public offering (IPO) opened for bidding this morning. The issue is a pure offer for sale of 3.51 crore shares from promoters Pinky and Manish Agarwal. The issue will be opened for subscription from July 2 to July 7 in a price band of Rs 233 to Rs 245 per share.
Crizac IPO: Grey‑market premium
Early chatter in the unofficial market is positive. Crizac shares were quoting at a Rs 39 premium on day 1 of its bidding. This indicates that the shares of the company could list near Rs 284, about 16% above the top end of the price band.
However, it is also important to note that grey‑market quotes can swing as overall sentiment changes.
Crizac IPO: Day‑one subscription so far
By the first afternoon, overall bids covered 19% of the shares on offer so far. Retail investors were the most active, booking 0.30 times of their quota. NIIs came in at 0.18 times, while QIB interest is yet to show up.
Crizac IPO: Big anchors on board
Ahead of the launch, the company raised Rs 258 crore from anchors at Rs 245 per share. Participants included global names such as Societe Generale, Allianz Global Investors, PineBridge Global Funds and domestic heavyweights like ICICI Prudential MF, Motilal Oswal MF, Bandhan MF, 360 One and several life insurers.
Crizac IPO: Allotment and listing
The allotment for the Crizac IPO is expected to be finalised on July 7, with the tentative listing date set for July 9.
Crizac IPO: Lead managers and registrar
Equirus Capital and Anand Rathi Advisors are the book‑running lead managers steering the sale, while MUFG Intime India (formerly Link Intime) will handle applications, refunds and share credit.
Crizac IPO: Key risks
The key risks mentioned by the company in the DRHP filing include are as follows:
“Our Company is heavily dependent on few global institutions of higher education for our revenue. Any loss of such global institutions of higher education may have an adverse impact on our business, results of operations and financial conditions.”
“We are heavily dependent on the service of our agents. Loss of any or all such agents may have an adverse impact on our business, results of operations and financial conditions.”
“Our success depends on our continued collaboration with global institutions of higher education. Our inability to maintain our collaboration with such global institutions of higher education may have an adverse impact on our business, results of operations and financial conditions.”