Navigating the world of Initial Public Offerings requires a thorough understanding of the company, its financial health, and its market position. For many investors, particularly those from the Muslim community, an additional layer of scrutiny involves assessing an investment’s adherence to Islamic Shariah principles. Here, we delve into the Crizac Ltd. IPO, covering its operations, financial landscape, IPO specifics, and its confirmed Shariah status.
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Crucial Shariah Status: Crizac Ltd. is Non-Shariah Compliant
For Muslim investors, ensuring an investment aligns with Islamic Shariah principles is a fundamental consideration. Based on the detailed Shariah screening, Crizac Ltd. is categorized as Non-Shariah Compliant.
The company failed two key Shariah rules.
- It failed the fourth rule because its fixed assets are less than 20% of its total assets.
- It also failed the sixth rule because its investment in fixed deposits is too high.
- While its business and impermissible income passed the screening, these financial ratios make it non-compliant.
Therefore, for Muslim investors prioritizing Shariah compliance, Crizac Ltd. IPO is not considered a Shariah-compliant investment opportunity.
For other investors interested in the operational and financial details of Crizac Ltd.’s IPO, please read on for a comprehensive analysis.
About Crizac Ltd.: A Presence in the Education Sector
Crizac Ltd. operates in the education sector. Its website indicates it provides various services related to education, focusing on helping individuals achieve their academic and professional goals. The company offers a wide range of educational services, including career counseling, coaching, and skill development programs. It aims to empower students and professionals through quality education and guidance.
Crizac Ltd. IPO: Key Details at a Glance
The Initial Public Offering of Crizac Ltd. is structured as a Bookbuilding Issue. The IPO opens on Wednesday, July 2, 2025, and closes on Friday, July 4, 2025. The company aims to raise up to ₹860.00 Crores through an Offer For Sale of 3,51,02,040 shares.
- IPO Open Date: July 2, 2025 (Wednesday)
- IPO Close Date: July 4, 2025 (Friday)
- Face Value: ₹2 per share
- Issue Price Band: ₹233 to ₹245 per share
- Lot Size: 61 Shares
- Sale Type: Offer For Sale
- Total Issue Size: 3,51,02,040 shares (aggregating up to ₹860.00 Crores)
- Listing At: BSE, NSE
- Tentative Allotment Date: Monday, July 7, 2025
- Initiation of Refunds: Tuesday, July 8, 2025
- Credit of Shares to Demat: Tuesday, July 8, 2025
- Tentative Listing Date: Wednesday, July 9, 2025
- Cut-off time for UPI mandate confirmation: 5 PM on July 4, 2025
Financial Performance: Analyzing Crizac’s Growth
Crizac Limited has shown impressive financial performance, with revenue increasing by 16% and profit after tax (PAT) rising by 29% between the financial year ending March 31, 2025, and March 31, 2024.
- Assets: Increased from ₹304.99 Crores in March 2023 to ₹879.62 Crores in March 2025.
- Revenue: Grew from ₹517.85 Crores in March 2023 to ₹884.78 Crores in March 2025.
- Profit After Tax: Rose significantly from ₹112.14 Crores in March 2023 to ₹152.93 Crores in March 2025.
- EBITDA: Increased from ₹107.29 Crores in March 2023 to ₹212.82 Crores in March 2025.
- Net Worth: Showed consistent growth, from ₹221.37 Crores to ₹505.71 Crores in the same period.
- Total Borrowing: Remained stable at ₹0.08 Crores across all periods shown.
Key Performance Indicators (KPIs): Decoding Efficiency
Key Performance Indicators provide a deeper understanding of Crizac Ltd.’s operational efficiency and valuation.
- The market capitalization of Crizac IPO is ₹4287.07 Crores as of Monday, March 31, 2025.
- ROE (Return on Equity): 30.24%.
- ROCE (Return on Capital Employed): 40.03%.
- RoNW (Return on Net Worth): 30.24%.
- PAT Margin: 17.28%.
- EBITDA Margin: 25.05%.
- Price to Book Value: 8.48.
Objects of the Issue: Understanding Fund Utilization
The Crizac IPO is an Offer for Sale (OFS), which means the company will not receive any proceeds from the sale of shares by the selling shareholders. The funds from the IPO will go to the existing shareholders who are selling their shares.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Crizac IPO is currently ₹– (0.00%). This indicates that there is currently no premium expected over the issue price in the unofficial grey market. GMP is a dynamic indicator and should not be the sole basis for investment decisions.
Conclusion and Investor Outlook
Crizac Ltd. operates in the education sector, demonstrating solid financial growth and robust operational efficiency. The company has shown impressive increases in revenue, profit after tax, and EBITDA. Its stable total borrowing is also a positive sign. However, for Muslim investors, it is important to note that Crizac Ltd. is Non-Shariah Compliant due to its fixed asset ratio and investment in fixed deposits.
Disclaimer
This article is for informational and educational purposes only and should not be taken as financial advice. Investing in IPOs always comes with risks, and there is no promise of returns. We strongly recommend that you do your own thorough research, talk to a SEBI-registered financial advisor, and carefully read the Red Herring Prospectus (RHP) before making any investment decisions.
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