IPO News

Crayons Advertising fixes price band of Rs. 62-65 per share for its forthcoming public issue

Posted On : 2023-05-17 12:16:14( TIMEZONE : IST )

Crayons Advertising fixes price band of Rs. 62-65 per share for its forthcoming public issue

Crayons Advertising, a homegrown integrated advertising agency, announced that it had set the price band of Rs. 62-65 per share (Rs 10 paid up) for its forthcoming public offering through the book-building route. The issue, which will open on May 22, 2023, will close for public subscription on May 25, 2023. Of the total 64.30 lakhs equity share offered, 30.52 lakh shares for QIB, 9.18 lakh shares for HNI 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. 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.

Incorporated in 1986, Crayons Advertising has been promoted by Mr. Kunal Lalani. The 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.

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 & 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. The agency also focuses on getting overseas talent to join its Indian operations by engaging with multiple recruitment firms in European markets. Regarding the plans, Ashraye Lalani, Director, Technology & Growth at Crayons Adverting, said, "Around the world, there are still many independent agencies doing stellar work. We are looking at possible tie-ups and acquisitions involving independent agencies with a strong presence across the Middle East, US and UK, with a significant Indian diaspora."

Indian advertising grew 19% and crossed INR 1 trillion for the first time in 2022. Furthermore, advertising will grow at 11% CAGR till 2025. The growth was skewed towards digital media. Traditional media accounted for 30% of the growth, while digital media took over with 70%. At the same time, 71% of marketers to increase their ad spending in the next two years, out of which 85% of marketers are expected to increase their ad spending on digital and 47% on traditional media. 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.

Source : Equity Bulls


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