Crayons Advertising, the homegrown integrated advertising agency, has announced that it has 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 one of India's first 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 Kunal Lalani.
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 its 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 and technology.
The company recently announced that it had won mandates of Tata Sons, National Skill Development Corporation, Indian Oil Corporation, Tata Croma and Bank of Baroda, among others. As part of its expansion plans, it plans to tap the international advertising markets through tie-ups with independent agencies and acquisitions to help tap the Indian diaspora in countries like the Middle East, the US and the UK.
Ashraye Lalani, Director, Technology and 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 Rs 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 are likely 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.