Crayons Advertising IPO: Issue oversubscribed 30.26x, GMP jumps 95% ahead of the closure of subscription
Crayons Advertising’s initial public offering (IPO) consists of 6,430,000 equity shares with a face value of ₹10 totalling up to ₹41.80 crores. The initial public offering (IPO) will begin on May 22, 2023, and end on May 25, 2023. The shares are proposed for listing on NSE SME, and the offering is priced between ₹62 and ₹65 per share. The basis of allotment for the Crayons Advertising IPO will be finalised on Tuesday, May 30, 2023, and the anticipated date of listing is Friday, June 2, 2023.
On May 24, 30,26 times of the Crayons Advertising SME IPO were subscribed. The total number of shares bid is 13,92,00,000 compared to the offered shares of 46 lakh. The Crayons Advertising SME IPO retail subscription is 57.45 times. The total number of shares bid for the retail category is 12,28,26,000 compared to the shared offered of 21.38 lakh. NII subscription reached 12.43 times. The total number of shares bid for NII category is 1,54,18,000 compared to the shares offered of 12.40 lakh. The Crayons Advertising SME IPO QIB subscription is 0.78 times. The total number of shares bid for QIB category is 9.56 lakh compared to the offered shares of 12.22 lakh.
Qualified institutional buyers (QIBs) are entitled to 50% of the net offer, HNI/NII investors to 15% of the offer, and retail investors to at least 35% of the remaining net offer. The market maker for Crayons Advertising Ltd.’s SME IPO will be Securities Ltd. Corporate Capital Ventures Private Limited will lead and manage the offering, while Skyline Financial Services Private Ltd will serve as the registrar for Crayons Advertising Ltd.’s SME IPO.
The expected listing price for the Crayons Advertising SME IPO is ₹127 (cap price + today’s GMP), taking into account the price band of ₹65. Crayons Advertising’s most recent IPO GMP today is ₹62. Therefore, a hefty 95.38% listing premium above the listing price is shown by the GMP of ₹127 on the upper band of the IPO price of ₹65 for Crayons Advertising Ltd.
A R Ramachandran, Co-founder & Trainer-Tips2trades said “Besides being a very well established name in the industry, Crayons advertising has strong financials as can be seen with an effort to reduce debt and have a positive net cash flow. However, profit margins are thin and digital marketing innovations could potentially disrupt this sector in the years ahead. From a valuation perspective, PE ratio is very attractive and hence investors can subscribe for listing gains.”
