Crizac, a B2B education platform, is all set to hit the primary market with its Rs 860 crore IPO on July 2. A mainboard issue, the issue will close its bidding on July 4.
Let’s take a look at the most important details to watch out for before the IPO opens.
Crizac IPO: Offer for sale
Crizac’s IPO is entirely an Offer for Sale, where existing shareholders will offload 3.51 crore equity shares. Promoters Pinky Agarwal and Manish Agarwal will be the ones selling Rs 723 crore and Rs 137 crore worth of shares, respectively.
Crizac IPO: Price band and retail investment size
The price band is fixed between the range of Rs 233 to Rs 245 per share, with a minimum application size of 61 shares. At the lower band, a retail investor would need Rs 14,213 to place a bid.
Crizac IPO: Anchor bidding to set the tone
Ahead of the IPO, anchor bidding is scheduled for July 1. This will be the first big test of investor appetite, especially from institutional names.
Crizac IPO: Flat grey market premium so far
As of the latest, there is no premium on Crizac shares in the grey market. The shares of the company are currently trading at Rs 245, the upper end of the price band.
However, it is important to note that this is not the actual listing price and may fluctuate based on market sentiment.
Crizac IPO: Allotment and listing
Once bidding ends on July 4, the allotment process is expected to be completed by July 7, with shares credited to demat accounts by July 8. Crizac is likely to be listed on both NSE and BSE on July 9, marking its official entry into the public market.
Crizac IPO: Key risks
As per the DRHP filed by the company, some of the risk factors mentioned by the company include –
“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.”
Crizac IPO: What does Crizac actually do?
The company was founded in 2011. It operates a tech-enabled platform that connects global universities with student recruitment agents. It serves institutions in the UK, Canada, Australia, New Zealand, and Ireland, and claims to have processed over 5.95 lakh student applications.
It offers an end-to-end platform that manages applications, student engagement, and onboarding. The company has a presence in over 75 countries and over 135 institutional partners.