Crayons Advertising
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 22 May 2023 – 25 May 2023
- Listing date
- 02 Jun 2023
- Face value
- ₹10 per share
- Issue price
- ₹65 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹41.80 Cr
- Market cap at offer price
- ₹159 Cr
- Promoter holding
- 99.75% → 73.50% pre-issue → post-issue
- ISIN
- INE0OFK01019
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Corporate Capitalventures Pvt.Ltd.
- Registered office
- NSIC Complex, Maa Anandmayee Marg Okhla Industrial Estate, Phase-III, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 18,30,000 | — | — |
| Market maker | 3,22,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹65
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,30,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,60,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,10,000 |
| B-HNI (min) | 8 | 16,000 | ₹10,40,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 7.04 | — |
| P/E (×) | 9.23 | — |
| Market cap | — | ₹159 Cr |
Key performance indicators
- Return on net worth
- 4.33%
- ROCE
- 8.00%
- Debt / equity
- 0.26
- NAV per share
- ₹20.69
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Crayons Advertising
Crayons Advertising Limited was originally incorporated on July 3, 1986 as Crayons Advertising and Marketing Private Limited in Delhi and was converted into a public limited company (renamed Crayons Advertising Limited) with a fresh certificate of incorporation dated November 22, 2022. Branded as 'The Crayons Network', it operates from a registered office in Okhla, New Delhi and branch offices in Mumbai, Chennai, Kolkata and Lucknow with 188 employees, serving government and private-sector clients such as Kajaria, LIC, Air India, SBI, APL Apollo, Nissan, state tourism boards and ministries. The agency delivers 360-degree communication solutions — brand strategy, creative and artwork, offline media (TV, print, radio, cinema), digital marketing, outdoor (OOH) hoardings and large-scale event management — with notable campaigns including 'Desh Ki Mitti' (Kajaria), 'Wings of Change' (TATA Air India) and the global launch of 'Incredible India', and awards such as the Montreux Awards (Switzerland), Gold Aster Award (New York) and Bronze at the IPA Awards (London). It makes money by charging clients for these services while buying third-party media on their behalf; in the nine months ended December 31, 2022 it reported total income of ₹ 20,374.52 Lakhs and profit after tax of ₹ 1,267.08 Lakhs (FY2022: ₹ 19,404.97 Lakhs and ₹ 161.34 Lakhs).
Company Analysis
from RHPCrayons Advertising Limited ('The Crayons Network') is an integrated, full-service advertising and marketing communications agency providing 360-degree, end-to-end ad-tech solutions spanning brand strategy, creative, digital media, print/electronic media, outdoor (OOH) advertising and event management.
Crayons Advertising Limited was originally incorporated on July 3, 1986 as Crayons Advertising and Marketing Private Limited in Delhi and was converted into a public limited company (renamed Crayons Advertising Limited) with a fresh certificate of incorporation dated November 22, 2022. Branded as 'The Crayons Network', it operates from a registered office in Okhla, New Delhi and branch offices in Mumbai, Chennai, Kolkata and Lucknow with 188 employees, serving government and private-sector clients such as Kajaria, LIC, Air India, SBI, APL Apollo, Nissan, state tourism boards and ministries. The agency delivers 360-degree communication solutions — brand strategy, creative and artwork, offline media (TV, print, radio, cinema), digital marketing, outdoor (OOH) hoardings and large-scale event management — with notable campaigns including 'Desh Ki Mitti' (Kajaria), 'Wings of Change' (TATA Air India) and the global launch of 'Incredible India', and awards such as the Montreux Awards (Switzerland), Gold Aster Award (New York) and Bronze at the IPA Awards (London). It makes money by charging clients for these services while buying third-party media on their behalf; in the nine months ended December 31, 2022 it reported total income of ₹ 20,374.52 Lakhs and profit after tax of ₹ 1,267.08 Lakhs (FY2022: ₹ 19,404.97 Lakhs and ₹ 161.34 Lakhs).
Objects of the Issue
- Funding of working capital requirements of the Company ₹ 1682.17 Lakhs p.62
- Capital expenditure on infrastructure and cutting-edge technology for expansion (studios, Web3/AR/VR capabilities, tool software development, tech-enabled events and scaled/technology-enabled OOH business) ₹ 1529.50 Lakhs p.62
- General Corporate Expenses/Purposes (not to exceed 25% of gross proceeds) ₹ 967.83 Lakhs p.62
Issue Structure
- Total Issue
- 64,30,000 Equity Shares aggregating to ₹ 4179.50 Lakhs
- Fresh Issue
- 64,30,000 Equity Shares aggregating to ₹ 4179.50 Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹ 62 to ₹ 65 per Equity Share
- Lot Size
- Minimum 2,000 Equity Shares and in multiples of 2,000 Equity Shares thereafter
- Face Value
- ₹ 10 per Equity Share
Business Model
Crayons earns revenue by providing paid advertising and communication services to clients across five reported lines — media (print, TV & radio), outdoor advertising, digital, event management, and creative & artwork. It does not own media inventory: it plans campaigns and procures ad space/time (newspaper space, TV/radio spots, hoarding sites) from publication houses, radio stations and outdoor media vendors on clients' behalf, supplemented by in-house creative production, digital campaign execution and event organisation. Purchases of third-party media and services dominate its cost base (advertising and job work costs of ₹ 16,571.31 Lakhs against total expenses of ₹ 18,617.94 Lakhs for the nine months ended December 31, 2022).
Business Segments
SWOT Analysis
- • Deep, long-term client relationships driving recurring business(p.95)
- • Experienced promoters with 36+ years in the advertising industry(p.95)
- • Advanced technology/software stack giving an edge over competitors(p.95)
- • Marquee, diversified clientele (Kajaria, SBI, LIC, Air India, APL Apollo, etc.)(p.95)
- • Award-winning campaign credentials (Montreux, Aster Awards, IPA London)(p.86)
- • Stated track record of growth and profitability(p.70)
- • Fully integrated 360-degree agency operating from five offices(p.86)
- • High customer concentration - top 10 clients contributed ~73% of revenue(p.26)
- • Geographic concentration - majority of revenue dependent on Delhi(p.24)
- • Negative cash flows experienced in past periods(p.24)
- • No long-term contracts with clients; relationships terminable at will(p.28)
- • Potential conflicts of interest with promoter-linked group companies in similar business(p.22)
- • Company debarred/blacklisted by Government of Bihar (I&PR Department)(p.22)
- • Promoters' other listed venture (Mega Corporation Ltd) faced a SEBI restraint order and sees minimal trading(p.22)
- • History of delayed statutory filings (RoC/GST/TDS/EPF) attracting penalties and interest(p.24)
- • Indian advertising market expected to grow at 11% CAGR to INR 1,253.2 billion by 2026(p.17)
- • India projected to remain the world's fastest-growing advertising market(p.84)
- • Surging global digital ad spend (US$455 bn in 2021 to over US$645 bn by 2024)(p.82)
- • Building in-house Web3/Metaverse (AR/VR) capabilities as future growth driver(p.91)
- • AI-enabled digital OOH screens to unlock larger-volume outdoor business(p.91)
- • Stated strategy to expand client network and grow existing accounts(p.96)
- • Changes in government regulations or their implementation could disrupt operations(p.31)
- • Increase in taxes/levies (customs duties, GST) may materially hurt profitability(p.32)
- • Political instability or changes in liberalisation/deregulation policies(p.32)
- • Global economic and political conditions beyond the company's control(p.32)
- • Input-price volatility for ad space/sites (newspapers, radio spots, hoardings)(p.24)
- • Competition from lower-cost or differentiated offerings as the industry matures(p.29)
- • Rising interest rates increase borrowing costs(p.30)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Kunal Lalani | Promoter | 24.39% | 17.97% |
| Mrs. Vimi Lalani | Promoter | 12.23% | 9.01% |
| M/s Vimi Investments and Finance Pvt Ltd | Promoter (Corporate Promoter / Holding Company) | 63.00% | 46.42% |
| Mr. Vishal Lalani | Promoter Group | 0.13% | 0.10% |
| Mr. T.M. Lalani | Promoter Group | 0.004% | 0.00% |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.