Crayons Advertising filed the Draft Red Herring Prospectus (DRHP) with NSE Emerge for its initial public offering (IPO) on Monday. The company said it plans to offer 64.30 lakh shares with a par value of Rs 10 each in the bookbuilding process.
The integrated and innovative advertising agency promoted by Kunal Lalani said it offers a high-end ecosystem that includes an end-to-end adtech communications solution platform for advertising media services. The company’s services include brand strategy, creative solutions, events and activations, digital media and traditional media planning and buying.
Proceeds from the IPO would 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), Crayons said in a press release.
Corporate Capital Ventures is the book-running lead manager of the offering, while Skyline Financial Services is the registrar.
Crayons also stated that it has won marquee mandates including Tata Sons, National Skill Development Corporation, Indian Oil Corporation, Tata Croma and Bank of Baroda.
“National Skill Development Corporation’s mandate is to transform branding and strengthen connection with youth. The agency’s experience in handling government business played a crucial role in the final selection to take on its social media mandate,” she added.
Within the Tata Group Companies, Crayons announced that it recently received social media mandate for Tata Sons. “In recent years, the agency has managed and executed several prestigious campaigns for the Tatas. Crayons has also worked on the Tata Mumbai Marathon campaign, which serves as a case study for awareness and engagement. In addition, last year Crayons Advertising was commissioned by Tata to launch the historic Air India transition campaign ‘Wings of Change’ and to take on TATA Croma’s creative mandate.
Expert Market Research has valued the Indian advertising market at nearly Rs 67,000 in 2020. The market is expected to grow at a CAGR (compounded annual growth rate) of 11 percent during the forecast period 2022-27 to reach Rs. 1,25,300 crore by 2026, the market research firm said.
Dentsu International’s report indicated that India’s advertising market would remain the fastest growing in the world for the next two years. With a growth rate of 16 percent in 2022, ad spending would increase by 15.2 percent in 2023 and 15.7 percent in 2024, it said.
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