The initial public offering (IPO) of Crayons Advertising has been oversubscribed by 147.61 times, leading to a subscription worth Rs 4,104.67 crore, as per the company.
Crayons advertising also said that the retail portion of the issue has received a good response and was subscribed 169.94 times. The company said it received bids for 36.33 crore shares against 21.38 lakh shares on offer.
The Non-Institutional Investor category (NII) was subscribed 231.94 times, with company receiving for more than 21.29 crore shares against 9.18 lakh shares on offer. Finally, the Qualified Institutional Buyer (QIB) category was subscribed times with 5.51 crore shares received against 12.22 lakh shares on offer.
The company offered a total of 42.78 lakh shares (Rs 10/- paid up) through the book-building process in the price band of Rs 62-65 per share. Of the 42.78 shares offered, 9.18 lakh shares are reserved for HNI's, 12.22 lakh shares are reserved for QIB's and 21.38 lakh shares will be offered to retail investors.
International Institutional Investors, including Europe’s bank Societe Generale ODI, and other international and domestic institutional funds, have subscribed to Crayons Advertising’s anchor book. The company had offered 18.30 lakhs shares to the anchor investors.
Societe Generale ODI has been allocated 4.62 lakh shares. Vikasa Global Fund PCC has been allocated 302,000 shares. Belgrave Investment Fund has been allocated 3.02 lakh shares; Aegis Investment Fund PCC has been allocated 3.02 lakh shares. Among other institutional investors, Rajasthan Global Securities has been allocated 1.54 lakh shares; NAV Capital Emerging Star Fund has been allocated 1.54 lakh shares, and Silver Stallion Fund has been allocated 1.54 lakh shares in the anchor book.
On listing on June 2, 2023, Crayons Advertising will be India's first major homegrown integrated advertising agency to go public. Corporate Capital Venture is the lead manager to issue and Skyline Financial Services is the Registrar to the issue. The shares of the company will be listed on NSE Emerge.
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 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. The public issue proceeds will be utilised for capital expenditure on infrastructure and cutting-edge technology.