Veritaas Advertising
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 May 2024 – 15 May 2024
- Listing date
- 21 May 2024
- Face value
- ₹10 per share
- Issue price
- ₹114 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Total issue size
- ₹8.48 Cr
- Market cap at offer price
- ₹32.18 Cr
- Promoter holding
- 88.74% → 65.36% pre-issue → post-issue
- ISIN
- INE0SRI01019
- Registrar
- MAS Services Ltd.
- Lead managers
- Horizon Management Pvt.Ltd.
- Registered office
- 38/2A, Gariahat South Road, Dhakuria, Dhakuria, Rash Behari Avenue, West Bengal
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 | 1,74,000 | — | — |
| Market maker | 37,200 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹114
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,36,800 |
| S-HNI (min) | 2 | 2,400 | ₹2,73,600 |
| S-HNI (max) | 7 | 8,400 | ₹9,57,600 |
| B-HNI (min) | 8 | 9,600 | ₹10,94,400 |
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 (₹) | 2.11 | 6.66 |
| P/E (×) | 54.03 | 17.12 |
| Price to book (×) | 6.69 | — |
| Market cap | — | ₹32.18 Cr |
Key performance indicators
- Return on net worth
- 44.23%
- ROCE
- 39.65%
- Debt / equity
- 0.64
- PAT margin
- 17.36%
- NAV per share
- ₹17.05
- Price to book
- 6.69
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Veritaas Advertising
Veritaas Advertising Limited, incorporated on July 31, 2018 and converted to a public limited company on February 1, 2024, is an integrated advertising agency providing end-to-end communication solutions and marketing services. The company owns and operates advertisement spaces primarily in West Bengal, Guwahati, and Shillong, with operations extending to Delhi, Mumbai, and Pune. It offers services through multiple platforms including Outdoor of Home (OOH) media (police booth hoardings, pole kiosks, outdoor hoardings), transit media, and event-based advertising. The company operates its own workshop for fabrication and printing of advertisement materials. Revenue from operations grew from ₹230.41 lakhs in FY2021 to ₹903.26 lakhs as of February 10, 2024, with profit after tax of ₹156.80 lakhs as of the same date.
Company Analysis
from RHPVeritaas Advertising Limited is an integrated advertising agency offering 360-degree advertising and marketing services across outdoor, transit, and events platforms, primarily in West Bengal, Assam, and other Indian cities.
Veritaas Advertising Limited, incorporated on July 31, 2018 and converted to a public limited company on February 1, 2024, is an integrated advertising agency providing end-to-end communication solutions and marketing services. The company owns and operates advertisement spaces primarily in West Bengal, Guwahati, and Shillong, with operations extending to Delhi, Mumbai, and Pune. It offers services through multiple platforms including Outdoor of Home (OOH) media (police booth hoardings, pole kiosks, outdoor hoardings), transit media, and event-based advertising. The company operates its own workshop for fabrication and printing of advertisement materials. Revenue from operations grew from ₹230.41 lakhs in FY2021 to ₹903.26 lakhs as of February 10, 2024, with profit after tax of ₹156.80 lakhs as of the same date.
Objects of the Issue
- Funding the capital expenditure towards setting up of new Police Booths in West Bengal, Assam, Maharashtra and Delhi Up to ₹526.75 lakhs p.22
- Funding the capital expenditure in Pole Kiosks for setting up of traffic signal point display in Kolkata, Mumbai and Pune Up to ₹60.00 lakhs p.22
- General corporate purposes p.22
- Funding the capital expenditure towards setting up of new Police Booths in West Bengal, Assam, Maharashtra and Delhi 526.75 lakhs p.75
- Funding the capital expenditure in Pole Kiosks for setting up of traffic signal point display in Kolkata, Mumbai and Pune 60.00 lakhs p.75
- General Corporate Purposes p.75
- Capital expenditure towards fabrication of police booths ₹526.75 lakhs p.118
- Capital expenditure towards installation of pole kiosks ₹60.00 lakhs p.117
- General corporate purposes p.113
Issue Structure
- Total Issue
- Up to 7,44,000 Equity Shares aggregating up to ₹[●] lakhs
- Fresh Issue
- Up to 7,44,000 Equity Shares of face value of ₹10 each at ₹[●] per share aggregating up to ₹[●] lakhs
- Offer for Sale
- Nil
- Price Band
- Floor Price ₹[●] to Cap Price ₹[●] (to be determined and advertised)
- Lot Size
- Bid Lot [●] shares and multiples thereof
- Face Value
- ₹10 per equity share
Business Model
Veritaas generates revenue by providing high-end integrated advertising and marketing services to clients seeking brand visibility through multiple outdoor and transit platforms. The company operates police booth advertisements, outdoor hoardings, pole kiosks at traffic signal points, newspapers insertions, brochures, and event-based advertising solutions. The company fabricates and maintains police booths and similar structures at its own cost and has exclusive usage rights for three-year periods (renewable). The business model includes both owned media spaces (police booths) and coordination with third parties for additional ad space. Clients pay for advertising services based on space, duration, and format.
Business Segments
SWOT Analysis
- • Integrated advertising agency with owned media and multi-platform presence(p.21)
- • Exclusive rights to police booth advertising through long-term agreements with Police Department(p.29)
- • Growing Indian advertising market with strong CAGR tailwind(p.21)
- • Revenue growth trajectory with increasing profitability(p.22)
- • Reduced customer concentration risk through geographic diversification strategy(p.21)
- • Integrated service portfolio across multiple advertising platforms(p.77)
- • Established in-house manufacturing capability for police booths(p.77)
- • Diversified customer base across multiple industries(p.77)
- • Multi-geography sales network(p.77)
- • Demonstrated success in police booth segment with 135 installations(p.77)
- • Strong financial performance with improving EBITDA margin(p.92)
- • High return on equity and return on capital employed(p.92)
- • Fully integrated service portfolio across offline advertising platforms with in-house infrastructure(p.113)
- • Established market presence in multiple geographies with geographic revenue diversification(p.114)
- • Diversified customer base across multiple industries and geographies(p.114)
- • Experienced management team with strong industry background and proven execution capabilities(p.115)
- • Strong growth trajectory with EBITDA margin expansion and profitability improvements(p.115)
- • Exclusive rights to police booth advertising with recurring renewal history(p.113)
- • Integrated advertising platform with owned media assets(p.205)
- • Strong revenue and profit growth trajectory(p.211)
- • High profit margins and EBITDA expansion(p.212)
- • Unique police booth advertisement model with exclusive rights(p.205)
- • Improved PAT margins through capex efficiency(p.209)
- • Heavy geographic concentration with majority revenue from West Bengal(p.34)
- • Significant customer concentration risk with top 10 customers contributing 58.85% of revenue(p.35)
- • Negative cash flows in past years affecting growth capacity(p.31)
- • History of delays in statutory payment obligations (GST and EPF)(p.32)
- • History of delays in statutory filings with RoC(p.34)
- • Dependence on workshop for critical operations with limited redundancy(p.29)
- • Promoter litigation outstanding with ₹92.96 lakhs amount involved(p.36)
- • Significant promoter control with limited minority protection (88.74% post-issue)(p.39)
- • High concentration among top customers poses revenue risk(p.93)
- • Significant dependence on police booth approval and renewal process(p.77)
- • Risk of approval invalidation due to strict installation timeline(p.77)
- • Increasing leverage with rising debt levels(p.50)
- • Dependence on police department for booth space availability(p.84)
- • High customer concentration with top 10 clients accounting for 58.85% of revenues(p.125)
- • Dependence on third parties for critical resources including space and materials(p.113)
- • Significant leverage with debt-to-equity ratio of 0.64 in recent period(p.115)
- • Limited geographic footprint relative to major national competitors(p.114)
- • Small absolute scale relative to competitors with revenue of ₹903.26 lakhs in latest period(p.115)
- • Significant dependence on few large customers(p.209)
- • Rising debt burden and leveraged balance sheet(p.216)
- • Elevated finance costs from increased borrowings(p.212)
- • Litigation against major customer with unrecovered receivables(p.185)
- • Negative cash flows from operations in past years(p.206)
- • Expansion into new geographic markets for police booth and traffic signal advertising(p.22)
- • High-growth advertising industry driven by digital adoption and brand awareness needs(p.21)
- • Leverage integrated agency model to capture rising demand for omnichannel solutions(p.21)
- • Cross-sell expansion to existing customer base with multiple service platforms(p.21)
- • Expansion into new geographies for police booth installations(p.77)
- • New product line of Pole Kiosks for traffic signal displays(p.84)
- • Global advertising market growth driven by digital expansion(p.101)
- • India's robust economic growth and services sector expansion(p.99)
- • Strengthening financial sector and credit growth supporting investment(p.99)
- • Growth of digital advertising market at 39.5% annually with shift from print and TV(p.111)
- • Expansion into emerging geographies with high growth potential across India(p.113)
- • India advertising market growing at double-digit rates ahead of global economy(p.111)
- • Expanding into new advertising verticals including radio and print advertising(p.123)
- • Growth in out-of-home advertising with 4.4% annual growth expected(p.102)
- • Rising adoption of AI and data analytics driving targeted and personalized advertising(p.103)
- • Expansion of police booth network across new geographies(p.206)
- • Growing recognition of OOH advertising effectiveness(p.206)
- • Expansion to new markets and platforms(p.205)
- • Scale benefits from improved operational leverage(p.209)
- • Dependence on Police Department approval and renewable rights for police booth segment(p.28)
- • Availability and pricing of ad space controlled by third parties(p.28)
- • Customer revenue concentration and lack of long-term contracts(p.29)
- • Cyclical customer demand dependent on end-customer industry performance(p.29)
- • Competitive intensity with both organized and unorganized market players(p.39)
- • Payment delays and defaults by customers affecting working capital(p.37)
- • Lease-based premises with renewal and termination risks(p.31)
- • Regulatory approval risks for new licenses and renewals(p.31)
- • Regulatory changes in GST and tax laws could adversely affect operations(p.46)
- • Uncertainty from Finance Act 2023 and Personal Data Protection Bill(p.47)
- • Dependence on Indian economic conditions(p.47)
- • Risk of political instability and changes in economic liberalization policies(p.47)
- • Natural calamities and their impact on Indian economy(p.48)
- • Terrorist attacks, civil unrests and acts of violence(p.48)
- • Global economic and political conditions affecting business(p.48)
- • Foreign investment restrictions under Indian law(p.47)
- • Print advertising segment declining at -3.3% annually creating pressure on traditional channels(p.102)
- • TV advertising facing pressure from digital with market share declining from 25% to 21.8% by 2026(p.103)
- • Intense competitive landscape with key players investing in digital transformation(p.106)
- • Ad fraud and privacy concerns posing challenges to market growth(p.104)
- • Government regulation affecting political advertising and campaign spending(p.111)
- • Economic uncertainty and geo-political risks impacting advertising spend(p.102)
- • Dependence on government/municipal policies for police booth availability(p.206)
- • Competition from organized and unorganized advertising players(p.216)
- • Volatility in advertising space availability and pricing(p.206)
- • Economic slowdown impact on customer spending(p.206)
- • Dependence on workshop for fabrication and printing capacity(p.206)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Debojyoti Banerjee | Promoter | 88.74% | 88.74% |
| Sangita Debnath | Promoter | 0% | 0% |
| Mina Debnath | Promoter | Negligible | Negligible |
| Debojyoti Banerjee | Promoter | 88.74% | 65.36% |
| Mina Debnath | Promoter | Negligible | Negligible |
| Sitalsat Traders Private Limited | Promoter Group | 4.04% | null |
| Jiwan Deep Commercial Private Limited | Promoter Group | 4.04% | null |
| Milan Parkeria | Promoter Group | 1.01% | null |
| Debojyoti Banerjee | Promoter and Chairman & Managing Director | 88.74% | 65.36% |
| Sangita Debnath | Promoter and Whole-time Director | — | — |
| Mina Debnath | Promoter and Non-Executive Director | Negligible | Negligible |
| Debojyoti Banerjee | Promoter | 88.74% | — |
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.