Crayons Advertising IPO to open on May 22; sets price band at Rs 62-65 per share
18/05/2023
new delhi, may 17: Homegrown advertising agency Crayons Advertising on Wednesday said it has fixed a price band of Rs 62-65 per share for its initial share sale offering, which will open for public subscription on May 22.
The issue will conclude on May 25 and shares of the company will be listed on NSE Emerge, the company said in a statement. The company would offer 64.30 lakh equity shares of face value Rs 10 each through the book-building process. At the upper price band of the issue, the advertising firm will raise Rs 41.79 crore. Incorporated in 1986, Crayons Advertising Company provides a high-end ecosystem and end-to-end ad-tech communication solutions platform for advertising media services consisting of brand strategy, events, digital media, Print Media, and Outdoor (OOH) Media services, which cover advertisement modes such as Newspapers, Brochures, Magazines, Television Channels, FM channels and display of Outdoor Hoardings, etc. Of the total 64.30 lakhs equity share offered, 30.52 lakh shares for QIB, 9.18 lakh shares for HNIs, and 21.38 shares will be provided to the public. The company will raise Rs 41.79 crore at the upper price band of the issue. On listing, Crayons Advertising will be India's first major homegrown integrated advertising agency to go public.
The company plans to invest in setting up its own film and animation studios and enhance its existing foundation of Web3 capabilities to offer more dynamic Metaverse solutions, including AR, VR, and other emerging immersive tech.
It also plans to enhance a wide array of event offerings with new-age technology applications to allow omnipresence, scale up the OOH business and acquire talent from the international market.
The public issue proceeds will be utilised for capital expenditure on infrastructure and cutting-edge technology. The company recently announced that it won marquee mandates, including TATA Sons, National Skill Development Corporation, Indian Oil Corporation, TATA Croma, and Bank of Baroda.
As part of its expansion plans, it plans to tap the international advertising markets through strategic tie-ups with independent agencies and acquisitions to help tap the Indian diaspora in countries like the Middle East, the US, and the UK.
For the nine months ended December 2022, Crayons Advertising earned a total revenue of Rs 203.75 crore and a net profit of Rs 12.67 crore. Meanwhile, it achieved a total revenue of Rs 194.05 crore and a net profit of Rs 1.61 crore for the financial year ended March 2022.
Corporate Capital Venture is the lead manager, and Skyline Financial Service is the Registrar issue. The shares of the company will be listed on NSE Emerge
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