P N Gadgil Jewellers, Crizac file DRHP with SEBI to raise funds via IPO

In a fresh development in the initial public offering (IPO) market, jewellery firm P N Gadgil Jewellers and student recruitment solution provider Crizac have filed their draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) to list their shares on domestic exchanges. While P N Gadgil Jewellers looks to raise up to ₹1,100 crore via the IPO route, Crizac plans to garner up to ₹1,000 crore from the public issue.  

As per the DRHP filed with the SEBI, the public issue of P N Gadgil Jewellers comprises a fresh issue of equity shares worth up to ₹850 crore and an offer for sale (OFS) of shares up to ₹250 crore by existing shareholders. Under the OFS segment, promoter SVG Business Trust is the only selling shareholder.

The company intends to use the capital raised through the issuance of fresh equities for the funding of expenditure towards the setting-up of 12 new stores in Maharashtra, repayment of certain borrowings availed by the company, and to meet general corporate purposes.

P N Gadgil Jewellers is the second largest among the prominent organised jewellery players in Maharashtra, in terms of the number of stores as on January 2024, which is the largest market for BIS-registered outlets in India, as per the DRHP. As of December 31, 2023, the company expanded to 33 stores, which includes 32 stores across 18 cities in Maharashtra and Goa and one store in the U.S. with an aggregate retail area of approximately 95,885 square feet. All the stores are operated and managed by the company with 23 being owned stores and 10 franchisee stores.

Motilal Oswal Investment Advisors Limited, Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited), and BOB Capital Markets Limited are the book running lead managers to the issue.

Meanwhile, Kolkata-based Crizac, which offers international student recruitment solutions to global institutions of higher education in the United Kingdom, Canada, the Republic of Ireland, Australia, and New Zealand (ANZ), is looking to raise the fund entirely through the share sale by the existing shareholders. There is no new fresh equity part, so the company will not receive any capital from IPO proceeds.

The OFS consists of the sale of equity shares of up to ₹841 crore by Pinky Agarwal and up to ₹159 crore by Manish Agarwal.

As per the DRHP, the company has reserved up to 50% of the offer for qualified institutional buyers, up to 15% for non-institutional investors, and remaining 35% for retail individual investors. The offer includes a reservation for subscription by eligible employees.

Crizac is a major player in student recruitment from India to the UK and has established strong partnerships with leading universities in the United Kingdom. It holds a significant market share of approximately 13% based on the number of Indian students pursuing higher education in the UK in 2023, according to F&S report mentioned in the DRHP. During the six months ending September 30, 2023, and in the last three fiscal years, Crizac Limited facilitated enrollment 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. As of December 31, 2023, the company had over 5,300 registered agents globally, including 1,819 active agents in fiscal 2023, with a significant presence in India and various countries like the United Kingdom, Nigeria, Pakistan, Bangladesh, Nepal, Sri Lanka, Kenya, Vietnam, Canada, and Egypt.

On the financial front, Crizac posted 79.47% growth in consolidated revenue from operations at ₹472.97 crore in FY23 from ₹263.53 crore in the previous year, primarily due to an increase in the revenue from education consultancy services. Profit after tax grew 65.50% from ₹67.76 crore for the financial year 2022 to ₹112.14 crore for the financial year 2023. For the six months ended September 30, 2023, the consolidated revenue from operations stood at ₹262.89 crore and profit after tax was at ₹89.61 crore.