Crizac's Rs 860 Crore IPO Opens with Strong Anchor Interest and Positive Grey-Market Premium

Strategic Insights -

Oliviya Kunjumon Crizac's initial public offering (IPO) of Rs 860 crore has opened for bidding, with a price band of Rs 233 to Rs 245 per share. The issue is a pure offer for sale of 3.51 crore shares from promoters Pinky and Manish Agarwal. Early chatter in the unofficial market indicates a positive sentiment, with shares quoting at a Rs 39 premium on the first day of bidding. The company has already raised Rs 258 crore from anchor investors at Rs 245 per share, with global names such as Societe Generale and domestic heavyweights like ICICI Prudential MF participating.

Key Takeaways:

  • The Crizac IPO opened for subscription on July 2 and will close on July 7, with a price band of Rs 233 to Rs 245 per share.
  • The issue is a pure offer for sale of 3.51 crore shares from promoters Pinky and Manish Agarwal, worth Rs 860 crore.
  • The company raised Rs 258 crore from anchor investors at Rs 245 per share, with participants including global names and domestic heavyweights.
  • Retail investors have been the most active in the bidding process, booking 0.30 times of their quota, while non-institutional investors (NIIs) have booked 0.18 times of their quota.
  • The allotment for the Crizac IPO is expected to be finalized on July 7, with a tentative listing date set for July 9.
  • The key risks mentioned by the company in the DRHP filing include dependence on few global institutions of higher education, loss of agents, and inability to maintain collaboration with global institutions of higher education.

Statistics:

  • 3.51 crore shares on offer is worth Rs 860 crore at the upper end of the price band.
  • Rs 258 crore was raised from anchor investors at Rs 245 per share.
  • 0.30 times of retail quota has been booked by retail investors.
  • 0.18 times of NIIs quota has been booked by non-institutional investors.
  • The IPO will be open for subscription from July 2 to July 7.

Sources:

  • IE Online Media Services Pvt. Ltd.
  • Contify.com (on behalf of IE Online Media Services Pvt. Ltd.)