Crayons Advertising fixes price band ahead of SME IPO on May 22; 10 key points here
3 min read 17 May 2023, 02:16 PM ISTCrayons Advertising is the next hot IPO in the SME segment. The company has announced price bands ahead of the IPO. Upon listing, Crayons will be be India's first major homegrown integrated advertising agency to go public.
PremiumSME IPO: Crayons Advertising has fixed the price band from ₹62 to ₹65 per share on its initial public offering (IPO). The issue is set to open next week for investors. Post the IPO, Crayons Advertising will be the first major homegrown integrated advertising agency in India to list on exchanges.
Ahead of the public offer, Crayons has announced its expansion plan.
Ashraye Lalani, Director, of 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."
Here are 10 key highlights of this upcoming IPO:
1. The IPO will open on May 22, 2023, and will close on May 25, 2023. Bidding for anchor investors will be allowed a day prior to the main IPO. The issue is through the book-building route.
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2. The company is offering a total of 64.30 lakhs equity shares in the IPO. Of which, 30.52 lakh shares are kept for QIB, 9.18 lakh shares are reserved for HNI and 21.38 shares will be provided to the retail investors.
3. The price band for the IPO is fixed at the lower band of ₹62 per equity share and the upper band of ₹65 per equity share. The face value for these equities is ₹10 paid-up each. At the upper price band, the company plans to raise ₹41.79 crore.
4. 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.
5. The proceeds of the public offer will be used for capital expenditure on infrastructure & cutting-edge technology.
6. Also, Crayons is looking 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.
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7. Further, the company 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. Recently, it won marquee mandates, including TATA Sons, National Skill Development Corporation, Indian Oil Corporation, TATA Croma, and Bank of Baroda.
8. Meanwhile, Crayons focuses on getting overseas talent to join its Indian operations by engaging with multiple recruitment firms in European markets.
9. For the nine months period of FY23, Crayons Advertising posted a total revenue of ₹203.75 crore and a net profit of ₹12.67 crore. Meanwhile, in FY22, the company recorded a total revenue of ₹194.05 crore and a net profit of ₹1.61 crore respectively.
10. In 2022, Indian advertising grew 19% and crossed ₹1 trillion for the first time. Moreover, advertising is expected to grow at 11% CAGR till 2025. At the same time, Crayons highlighted that 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.
Founded in 1986 and promoted by. Kunal Lalani, Crayons 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.
