- Date : 20/05/2023
- Read: 3 mins
Crayons Advertising's IPO offers investors a chance to be part of an established advertising powerhouse, starting on May 22 with a price band of Rs 62–65 per share.
Crayons Advertising, whose initial public offering (IPO) is set to open on May 22, 2023. With a price band of Rs 62-65 per share, this IPO is bound to capture the interest of investors from various backgrounds.
Let's closely examine the implications for potential investors.
What is an IPO?
Before we learn about Crayons Advertising's IPO, let's take a moment to understand what an IPO is. In the initial public offering (IPO), a private company, for the very first time, offers its shares to the public. Hence, it is also known as going public. This strategic move enables the company to secure money from investors while allowing the public to invest in the company. The public, in return, earns profit from the company's success.
What is Crayons Advertising?
Crayons Advertising is an advertising agency based in India that offers various services, including branding, advertising concepts, marketing strategies, events, digital services, print media, and content marketing. The company was founded in 1986 and has quickly established itself as a major player in the advertising industry, working with clients across a range of sectors, including FMCG, healthcare, and hospitality.
Crayons Advertising's IPO: What You Need to Know
Now, the exciting part is the IPO itself. Here are some highlights of Crayons Advertising's IPO:
- The IPO will open on May 22 and close on May 26
- The company will list the shares on NSE Emerge
- The price band has been set at Rs 62-65 per share with a lot size of 2000 shares
- The company aims to raise Rs 41.79 crore through the IPO
- The company plans to offer 64.30 lakh equity shares with a nominal face value of Rs 10
- Out of the 64.30 lakh equity shares, the company has reserved 30.52 lakh shares for qualified institutional buyers (QIBs) and 9.18 lakh shares for High Net-worth individuals (HNIs)
- The remaining 21.38 lakh shares will be available to the public
- The funds raised will be used for working capital requirements, capital expenditure on infrastructure and technology, and general corporate purposes.
- The Registrar to the issue is Skyline Financial Service, and the lead manager is Corporate Capital Venture.
Crayons Advertising's IPO: Company financials
- During the nine months ended December 2022, Crayons Advertising declared an income of Rs 203.75 crore. Against this, it declared a net profit of Rs 12.67 crore.
- In the fiscal year ending in March 2022, it recorded a total income of Rs 194.05 crore with a net profit of Rs 1.61 crore.
- The key performance indicators (KPIs) for the fiscal year ended March 2022 include
- an earnings per share (EPS) value of 0.9,
- a return on net worth of 4.33 per cent,
- a net asset value (NAV) of Rs 20.69 per share, and
- a price / earnings ratio of Rs 68.89 at the lower end of the price band and Rs 72.22 at the higher end of the price band
Last Words
Crayons Advertising's upcoming IPO presents a unique chance for investors to be a part of an established advertising powerhouse with immense growth potential. With its stellar reputation, innovative approach, and impressive financial performance, Crayons Advertising is primed to make a mark in the advertising industry. So, mark your calendar for May 22!
Crayons Advertising, whose initial public offering (IPO) is set to open on May 22, 2023. With a price band of Rs 62-65 per share, this IPO is bound to capture the interest of investors from various backgrounds.
Let's closely examine the implications for potential investors.
What is an IPO?
Before we learn about Crayons Advertising's IPO, let's take a moment to understand what an IPO is. In the initial public offering (IPO), a private company, for the very first time, offers its shares to the public. Hence, it is also known as going public. This strategic move enables the company to secure money from investors while allowing the public to invest in the company. The public, in return, earns profit from the company's success.
What is Crayons Advertising?
Crayons Advertising is an advertising agency based in India that offers various services, including branding, advertising concepts, marketing strategies, events, digital services, print media, and content marketing. The company was founded in 1986 and has quickly established itself as a major player in the advertising industry, working with clients across a range of sectors, including FMCG, healthcare, and hospitality.
Crayons Advertising's IPO: What You Need to Know
Now, the exciting part is the IPO itself. Here are some highlights of Crayons Advertising's IPO:
- The IPO will open on May 22 and close on May 26
- The company will list the shares on NSE Emerge
- The price band has been set at Rs 62-65 per share with a lot size of 2000 shares
- The company aims to raise Rs 41.79 crore through the IPO
- The company plans to offer 64.30 lakh equity shares with a nominal face value of Rs 10
- Out of the 64.30 lakh equity shares, the company has reserved 30.52 lakh shares for qualified institutional buyers (QIBs) and 9.18 lakh shares for High Net-worth individuals (HNIs)
- The remaining 21.38 lakh shares will be available to the public
- The funds raised will be used for working capital requirements, capital expenditure on infrastructure and technology, and general corporate purposes.
- The Registrar to the issue is Skyline Financial Service, and the lead manager is Corporate Capital Venture.
Crayons Advertising's IPO: Company financials
- During the nine months ended December 2022, Crayons Advertising declared an income of Rs 203.75 crore. Against this, it declared a net profit of Rs 12.67 crore.
- In the fiscal year ending in March 2022, it recorded a total income of Rs 194.05 crore with a net profit of Rs 1.61 crore.
- The key performance indicators (KPIs) for the fiscal year ended March 2022 include
- an earnings per share (EPS) value of 0.9,
- a return on net worth of 4.33 per cent,
- a net asset value (NAV) of Rs 20.69 per share, and
- a price / earnings ratio of Rs 68.89 at the lower end of the price band and Rs 72.22 at the higher end of the price band
Last Words
Crayons Advertising's upcoming IPO presents a unique chance for investors to be a part of an established advertising powerhouse with immense growth potential. With its stellar reputation, innovative approach, and impressive financial performance, Crayons Advertising is primed to make a mark in the advertising industry. So, mark your calendar for May 22!
