Mumbai: SEBI has returned the draft documents of Crizac Ltd, a student recruitment solution provider, which aimed to launch a Rs 1,000 crore Initial Public Offering (IPO). This move might delay the Kolkata-based company’s plans for its initial share sale.
Offer For Sale (OFS)
The IPO was supposed to be an Offer For Sale (OFS) by the company’s promoters, Pinky Agarwal and Manish Agarwal, with no new shares being issued. Pinky Agarwal planned to sell shares worth Rs 841 crore, while Manish Agarwal planned to sell shares worth Rs 159 crore.
Crizac filed its Draft Red Herring Prospectus (DRHP) with SEBI in April. However, according to an update on SEBI’s website on Monday, the regulator returned the documents on July 15 without providing any reasons.
Recruitment Solutions
Crizac offers international student recruitment solutions to higher education institutions in countries like the UK, Canada, Ireland, Australia, and New Zealand. The company has partnerships with leading universities in the UK and holds a significant market share of about 13% in recruiting Indian students to the UK.
Over the last three years, Crizac has processed more than 3.82 lakh student applications from over 72 countries through its registered agents and collaborated with over 140 global universities.
In the fiscal year 2023, Crizac’s revenue from operations jumped 79.5% to Rs 472.97 crore from Rs 263.53 crore the previous year. Additionally, the company’s profit after tax grew 65.50% to Rs 112.14 crore from Rs 67.76 crore the year before.
Equirus Capital and Anand Rathi Advisors are the book-running lead managers for the issue.
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