Nearly a week after Kolkata-headquartered Crizac raised Rs 860 crore (£73.9 million / $100 million) through its initial public offering (IPO), structured as an offer for sale (OFS) by promoters Pinky Agarwal and Manish Agarwal, the company’s shares surged in domestic stock markets on Wednesday, at nearly a 15% premium above the issue price of Rs 245.
The IPO’s success – managed by Equirus Capital Private Limited and Anand Rathi Advisors Limited – along with its strong performance on the National Stock Exchange and Bombay Stock Exchange, is expected to fuel Crizac’s expansion into new destinations and services.
“The reason we went for a full OFS, or fully secondary, as we might say in the UK, is because the company’s balance sheet is very strong. We already have sufficient capital to support our expansion plans. Our focus remains on diversifying globally, which has been our strength over the past five years and will continue to be our strength in the future,” Christopher Nagle, CEO of Crizac, told The PIE News.
While an OFS means that the company, in this case, Crizac, did not raise new capital through the IPO – with proceeds instead going to existing shareholders, namely the Agarwals – its entry into the financial markets allows the company to publicly demonstrate “the scale, size, and operations of the company in a transparent way”, according to Nagle.
Crizac’s decision to go public comes as it looks to expand, beyond student recruitment, into areas such as student loans, housing, and other services.
The company is also eyeing new geographies and high-growth markets within India.
We also see great potential and can add great value in other destinations like Ireland, the USA, and Australia
Vikash Agarwal, Crizac
“We have a strong plan to expand across cities in India. Even though we are already one of the biggest recruiters for India-UK, we believe there’s still significant room for growth,” stated Vikash Agarwal, chairman and managing director, Crizac.
“We also see great potential and can add great value in other destinations like Ireland, the USA, and Australia,” he added.
Crizac, which reported a total income of Rs 849.5 crore (£78m) in FY25, currently works with over 10,000 agents and some 173 international institutions.
Through its stock market listing, the company aims to strengthen confidence among its partners.
“The fact that we are listed doesn’t change how we interact with agents, but we believe it will lead to even greater trust from universities and agent partners alike, thanks to the level of diligence and corporate governance that is now required of us,” stated Nagle.
With a market capitalisation of Rs 5,379.84 crore (nearly £555m), Crizac’s solid financial track record and low debt levels have been key drivers behind its IPO, even as changing policies in major study destinations continue to influence the sector.
As destinations like Australia hike visa fees, the UK increases compliance among institutions and considers imposing levies on international student fees, the US tightens vetting and eyes visa time limits, and Canada raises financial thresholds amid falling study permits, it remains to be seen how students from India, Nigeria, and China will navigate their study abroad choices in the coming years.
According to government data presented in the Indian Parliament, there was a nearly 15% decline in Indian students going abroad, largely in the major four destinations, while countries like Germany, Russia, France, Ireland, and New Zealand saw increased interest.
However, despite the downturn, Crizac is confident that its move will inspire other Indian education companies to create value on the global stage.
“Being the first listed company in this space will unlock significant value for the industry. We believe many are already watching our listing closely, and there will be a lot others going public from this sector now,” stated Agarwal.
While the sector had anticipated Crizac’s IPO, along with a few other education companies, reports suggest that other players, such as education loan provider Credila and SoftBank-backed Eruditus, may also be preparing to go the IPO route soon.
As Eruditus aims to surpass $1 billion in revenue over the next five years and has already begun work on its IPO, Credila, formerly a subsidiary of HDFC Bank, filed draft papers with the Securities and Exchange Board of India last month to raise Rs 5,000 crore (roughly £476 million) via an IPO.
