Crayons Advertising IPO

Crayon Advertising is an advertising agency that offers 360-degree marketing and communication solutions to a wide variety of customers. The company’s services include creative design, brand marketing strategies, online and offline media planning & buying, and digital media marketing to help its clients build a solid brand identity.

Starting in 1986, the company has been in the domain for the last 36 years. It is one of the companies that offers fully integrated and independent marketing and communication solutions. Crayon Advertising has offices located in New Delhi, Mumbai, Chennai, Kolkata, and Lucknow.

Crayons Advertising Limited IPO Details

Crayon Advertising IPO contains fresh shares worth Rs. 41.80 crore. The IPO will open for bidding on May 22, 2023. It will remain open for three days before closing on May 25, 2023.

The lower and upper price bands for the shares are fixed at Rs. 62-65 per share.

Crayons Advertising Limited IPO Objective

The objectives of Crayon Advertising IPO are listed below.

• Funding for working capital requirements
• To meet the capital expenditure requirements
• Investment in cutting-edge technology for expansion
• General corporate expenses

Should you invest in Crayons Advertising Limited?

Here are a few important reasons to consider before investing in the IPO:

• Industry experience that extends over three decades.
• It offers solutions in different media platforms like printing, outdoor, mass media, and digital.
• Crayons Advertising is a part of the Indian advertising industry, which is expected to grow at 11.3% CAGR from 2022 to 2027.
• It has won several awards for its advertising campaigns, such as the Montreux Awards in Switzerland, the Gold Aster Award in New York, and the IPA Awards (Bronze) in London.

Competitive Peers

The other players as recognised by the company in DRHP are Affle (India) Ltd., Vertoz India Ltd., and Pressman Advertising Ltd.

Noteworthy Highlights of Crayon Advertising Ltd.

• Top 10 clients of the company contributed 73.1% of revenue from operations in the period ending on December 31, 2022.
• There is a significant growth in the company's revenue from operations from FY 21 to FY22.

IPO Financials

Know before investing

Strengths

1. The company enjoys the benefits of long-term relationships with its clients.

2. An attractive list of marquee clients.

3. The company is well-equipped with cutting-edge technology.

Risks

1. The Group Company had incurred losses in the past.

2. The company has had negative cash flow in the past. Continuous negative cash flow will impact the growth of the business.

3. A significant rise in the cost of ad space and the non-availability of ad spaces or sights would negatively impact the business.