NEW DELHI: Sebi has returned the draft documents of student recruitment solution provider Crizac Ltd, which was looking to float Rs 1,000 crore Initial Public Offering (IPO), an update with the markets regulator showed on Monday. The move might delay the Kolkata-based company’s initial share-sale.
The proposed IPO was entirely an Offer For Sale (OFS) by promoters, Pinky Agarwal and Manish Agarwal, with no fresh issue component.
The OFS consists of the sale of equity shares worth Rs 841 crore by Pinky Agarwal and up to Rs 159 crore by Manish Agarwal, according to the offer document.
The company filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in April.
According to an update on Sebi’s website on Monday, the markets regulator returned the company’s offer document on July 15 without providing reasons for the same.
Crizac offers international student recruitment solutions to global institutions of higher education in the United Kingdom, Canada, the Republic of Ireland, Australia and New Zealand.
It has established partnerships with leading universities in the UK and is a major player in student recruitment from India to the UK, holding a significant market share of about 13 per cent based on the number of Indian students pursuing higher education in the UK in 2023, the draft papers quoted a F&S report.
Over the last three years, Crizac facilitated enrolment applications from over 72 countries through its registered agents on its technology platform. It processed more than 3.82 lakh student applications and collaborated with over 140 global universities.
Crizac’s pro forma consolidated revenue from operations during the fiscal year 2023 jumped 79.5 per cent to Rs 472.97 crore from Rs 263.53 crore in the previous year. Besides, profit after tax grew 65.50 per cent to Rs 112.14 crore for the financial year 2023 from Rs 67.76 crore in the preceding fiscal.
Equirus Capital and Anand Rathi Advisors are the book-running lead managers to the issue.