Crayons Advertising, a renowned marketing and communications agency, is set to launch its initial public offering (IPO) for subscription on Monday next week. The IPO, valued at Rs 42 crore, has a price band fixed at Rs 62-65.
Notably, the gray market is indicating significant interest in the company’s shares, with trading occurring at a premium of Rs 35 (GMP) above the upper price band.
However, market experts advise investors to consider the company’s fundamentals and financials rather than relying solely on signals from the gray market. Post-IPO, the company’s shares will be listed on the SME platform of NSE, NSE SME.
Crayons Advertising IPO Details
The IPO entails the subscription of 64.30 lakh equity shares, with the issue open for subscription from May 22 to May 25.
The scrip, with a face value of Rs 10, has a lot size of 2000 shares and a price band of Rs 62-65. Qualified Institutional Investors (QIBs) have a reservation of 50% of the issue, while 15% is reserved for Non-Institutional Investors (NIIs) and 35% for retail investors.
The allotment of shares is scheduled to be finalized on May 30 after a successful IPO, and listing is expected to take place on June 2. Corporate Capital Ventures serves as the lead manager for the issue, while Skyline Financial Services is the registrar.
The funds raised through the IPO will be utilized for general corporate objectives, working capital requirements, and investments in infrastructure and technology for expansion.
Company Overview
Established in 1986, Crayons Advertising offers comprehensive advertising media services encompassing brand strategy, events, print media, digital media, and outdoor (OOH) media services.
In terms of financial performance, the company recorded a net profit of Rs 1.17 crore in the financial year 2020, followed by Rs 13 lakh in the subsequent year.
However, it showcased improvement in the financial year 2021-22, generating a net profit of Rs 1.61 crore. Notably, in the first nine months of the last financial year (April-December 2022), the company reported a net profit of Rs 12.67 crore.
