Crayons Advertising on Monday filed the Draft Red Herring Prospectus (DRHP) with NSE Emerge for its initial public offering (IPO). The company said it plans to offer 64.30 lakh equity shares with face value of Rs 10 apiece through the book-building process.
Promoted by Kunal Lalani, the integrated and innovative advertising agency said it provides a high-end ecosystem comprising an end-to-end adtech communication solutions platform for advertising media services. The company’s services span from brand strategy, creative solutions, events & activations, digital media and traditional media planning and buying.
The proceeds from the IPO would be used in building infrastructure and cutting-edge technology for expansion (Rs 15.28 crore) and funding working capital requirements (Rs 14.50 crore), Crayons stated in a release.
Corporate Capital Ventures is the book-running lead manager to the issue, while Skyline Financial Services is registrar.
Crayons also declared that it won marquee mandates, including Tata Sons, National Skill Development Corporation, Indian Oil Corporation, Tata Croma and Bank of Baroda.
“The mandate of the National Skill Development Corporation is to transform the brand notion and strengthen the connection with youth. The agency’s experience in handling government businesses played a vital role in the final selection for taking over its social media mandate,” it added.
Within the Tata Group Companies, Crayons said it recently bagged the social media mandate for Tata Sons. “In the last couple of years, the agency has handled and executed multiple prestigious campaigns for the Tatas. Crayons also worked on the Tata Mumbai Marathon campaign, which serves as a case study in awareness and engagement. Furthermore, in the past year, Crayons Advertising was appointed by Tata to launch the historic Air India transition campaign ‘Wings of Change’ and handle TATA Croma’s creative mandate,” the company further stated.
Expert Market Research has valued the Indian advertising market at nearly Rs 67,000 crore in 2020. The market is expected to grow at a CAGR (Compounded annual growth rate) of 11 per cent during the forecast period of 2022-27 to reach Rs 1,25,300 crore by 2026, the market research firm said.
Dentsu International’s report suggested that India’s advertising market would remain the fastest growing in the world over the next two years. With a growth rate of 16 per cent in 2022 and ad spending would increase by 15.2 per cent in 2023 and 15.7 per cent in 2024, it further stated.
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