MUMBAI: Crayons Advertising, India’s leading integrated and innovative advertising agency, announced Tuesday the submission of the Draft Red Herring Prospectus (DRHP) to NSE Emerge for the IPO. The company plans to offer 64.30 lakh shares with a par value of 10 rupees each in the bookbuilding process. Corporate Capital Ventures is the book-running lead manager of the offering. While Skyline Financial Services is the registrar of the issue.
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Sponsored by Kunal Lalani, Crayons Advertising is a three-and-a-half-decade young, award-winning and integrated company that offers a high-end ecosystem that includes an end-to-end platform for ad-tech communications solutions for advertising media services. Its services include brand strategy, creative solutions, events and activations, digital media and traditional media planning and buying. Proceeds from the IPO will be used to build infrastructure and cutting-edge technology for expansion (Rs. 15.28 crore) and to fund working capital needs (Rs. 14.50 crore).
Speaking to Bizz Buzz, Kunal Lalani, Founder and Managing Director of Crayons Advertising says, “The advertising sector is expected to benefit greatly from India’s rapid economic growth.” Infrastructure, banking and financial services (including fintech), tourism, government agencies and MSMEs are expected to benefit and large domestic players will take a larger share of advertising budgets in the coming years,” he said.
The Indian advertising market was valued at nearly Rs 67,000 in 2020 by Expert Market Research. The market is expected to grow at a CAGR of 11 percent during the forecast period 2022-27 and reach Rs. 1.25,300 by 2026. The Indian advertising market will remain the fastest growing in the world over the next two years, according to a new report by Dentsu International. With a growth rate of 16 percent in 2022 and ad spend growing 15.2 percent in 2023 and 15.7 percent in 2024.
The company recently announced it has won marquee mandates including Tata Sons, National Skill Development Corporation, IndianOil Corporation, TATA Croma and Bank of Baroda. The National Skill Development Corporation’s mandate is to transform branding and connect with youth. The agency’s experience in dealing with government business played a decisive role in the final selection for taking on the social media mandate. Within the Tata Group Companies, Crayons was recently given social media mandate for Tata Sons. In recent years, the agency has managed and executed several prestigious campaigns for the Tata Group. Crayons also worked on the Tata Mumbai Marathon campaign, which serves as a case study on awareness and engagement. In addition, last year Crayons Advertising was commissioned by Tata to launch Air India’s historic ‘Wings of Change’ transition campaign, assuming Tata Croma’s creative mandate.
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