Crayons IPO fully subscribed on Day 1; retail portion booked 8.79 times

Crayons Advertising Ltd’s SME initial public offer (IPO) was fully subscribed within hours of opening on day one – at 4.62 times so far, on the back of high bidding by retail investors, according to subscription data on the stock exchanges. The advertising agency’s IPO opened for bidding on May 22 and will close for subscription on May 25.

On Monday, retail individual investors (RII) showed overwhelming interest as the portion reserved for them was subscribed 8.79 times – the highest among the three groups of investors. The portion set aside for the qualified institutional buyers or QIB was subscribed 0.01 per cent, while the portion reserved for the non-institutional individual investors was subscribed 1.97 times as of 7:15 pm, as per data available at

Crayon Advertising’s 41.79 crore IPO is a complete fresh issue of 64.30 lakh shares with no offer-for-sale (OFS) component.

Of the total 64.30 lakh equity shares issued, 30.52 lakh shares have been set aside for QIBs, 9.18 lakh shares for high net worth individuals (HNIs), and 21.38 shares would be made available to the general public.

The company has fixed the price band at 62 to 65 per equity share for the proposed IPO. Through the book-building process, the company would issue 64.30 lakh equity shares with a face value of 10 apiece. The advertising company would raise 41.79 crore at the upper price band of the issue.

The issue’s lead manager is Corporate Capital Venture, and the registrar is Skyline Financial Service. The company intends to utilize the net fresh issue proceeds for the funding of working capital requirements, capital expenditure on infrastructure and cutting-edge technology for expansion, and for general corporate expenses.

Also Read: Crayons Advertising fixes price band ahead of SME IPO on May 22; 10 key points here

The company is also looking 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 tap the international advertising markets through strategic tie-ups with independent agencies and acquisitions to help tap the Indian diaspora in countries like the Middle East, the US, and the UK. 

Crayon Advertising’s net profit surged to 1.6 crore in FY22 from 12.9 lakh in FY21, while revenue came in at 194 crore from 106 crore in the previous year. For the nine-month period in FY23, the company posted a total total revenue of 203.75 crore and a net profit of 12.67 crore

It would become the first significant in-house integrated advertising company in India to list on exchanges following the IPO, and it will be listed on NSE Emerge. The company’s shares are scheduled to be allotted on May 30 and listed on the NSE’s SME platform on June 2.

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