Final subscription status of Crayons Advertising SME IPO

Crayons Advertising IPO Subscription Status
Crayons Advertising IPO Subscription Status

by Tanushree Jaiswal Last Updated: May 25, 2023 - 10:19 pm 1.9k Views
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The IPO of Crayons Advertising Ltd closed on Thursday, 25th May 2023. The IPO had opened for subscription on 22nd May 2023. Let us look at the final subscription status of Crayons Advertising Ltd at the close of subscription on 25th May 2023. 

A quick word on Crayons Advertising Ltd and the SME IPO

A quick background of Crayons Advertising Ltd. The company was incorporated in 1986 and has a pedigree of close to 4 decades. The outfit is positioned as an integrated marketing and communications agency. It offers a 360-degree view to the client problem spectrum and also offers a 360-degree solution to the clients for their communication and advertising needs. Crayons Advertising Ltd offers top of the line creative brand marketing strategy, online and  offline media planning apart from media buying. Moreover, Crayons kept pace with the big digital shift and even offers cutting-edge digital expertise, on-ground as well as virtual activation capabilities. Its solutions work across platforms like TV, print, internet, radio etc.

Crayons offers communication services and advertising media services as two discrete verticals. The latter comprises brand strategy, Events, Print Media, Digital Media, and out-of-home (OOH) Media services. In terms of deliverables, Crayons offer advertisement modes including Newspapers, Brochures, Magazines, Television Channels, FM channels, and Outdoor Hoardings. The fresh issue portion will be used to fund its working capital expenditure and for technology to facilitate expansion. The issue will be lead managed by Corporate Capital Ventures Private Limited while Skyline Financial Services Private Ltd will be the registrars to the SME IPO of Crayons Advertising Ltd.

The ₹41.80 crore Crayons Advertising IPO comprises of entirely a fresh issue of shares to the public. The total SME IPO of Crayons Advertising Ltd entails the fresh issue of 64.30 lakh shares which at the upper band of the price range at ₹65 per share aggregates to ₹41.80 crore. The IPO is entirely a fresh issue of shares with no offer for sale portion. The stock has a face value of ₹10 and retail bidders can bid in minimum lot size of 2,000 share each. Thus, the minimum investment of ₹130,000 in the IPO is the base limit. That is also the maximum that a retail investor can apply for in the IPO. 

HNIs can invest in 2 lots of 2,000 shares worth ₹260,000 as the bare minimum investment. There is no upper limit for the HNI / NII category. Crayons Advertising Ltd will deploy the funds for working capital needs of the company and for creating awareness and visibility of the brands. Post the IPO, the promoter equity in the company will get diluted from 99.75% to 73.50%. The issue is lead managed by Corporate Capital Ventures Ltd, while Skyline Financial Services Private Ltd will be the registrars to the issue. Let us now turn to the final subscription details of the IPO as of the close of subscription on 25th May 2023.

Final subscription status of Crayons Advertising Ltd

Here is the subscription status of the Crayons Advertising Ltd IPO as at close on 25th May 2023.

Investor Category

Subscription (times)

Shares bid for

Total Amount (₹ Cr.)

Qualified Institutions

45.20

5,52,34,000

359.02

Non-Institutional Buyers

171.71

21,29,20,000

1,383.98

Retail Investors

169.94

36,33,34,000

2,361.67

Total

137.28

63,14,88,000

4,104.67


The issue was only open for retail investors, QIBs and for the HNI / NIIs. There was a broad quota designed for each of the segments viz. the QIBs, the retail and the HNI NII. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO.

QIB Shares Offered

12,22,000 shares (26.57%)

NII (HNI) Shares Offered

12,40,000 shares (26.96%)

Retail Shares Offered

21,38,000 shares (46.48%)

Total Shares Offered

46,00,000 shares


However, the above table only accounts for 46.00 lakh shares while the total issue size is 64.30 lakh shares. That is because the balance of 18.30 lakh shares were allocated earlier as part of the anchor issue to the anchor investors a day ahead of the IPO opening. The anchor allotment was done on 21st May 2023 and details are as under. The 18.30 lakh shares were allocated to the anchor investors as below at the upper end of the price band at ₹65.

Name of Anchor Investor

No. of Shares Allocated

Bid Price Per Share (₹.)

Anchor Investor Portion (%)

Total Amount Allocated (₹.)

Societe Generale ODI

462,000

65

25.25%

3,00,30,000

Vikasa Global Fund

302,000

65

16.50%

1,96,30,000

Belgrave Investments

302,000

65

16.50%

1,96,30,000

Aegis Investments

302,000

65

16.50%

1,96,30,000

Rajasthan Global

154,000

65

8.42%

1,00,10,000

NAV Capital VCC

154,000

65

8.42%

1,00,10,000

Silver Stallion

154,000

65

8.42%

1,00,10,000

Grand Total

18,30,000

65

100.00%

11,89,50,000


The oversubscription of the IPO was dominated by the HNI / NIIs followed by the retail investors and the QIB investors in that order. The table below captures the day-wise progression of the subscription status of Crayons Advertising Ltd IPO.

Date

QIB

NII

Retail

Total

May 22nd, 2023 (Day 1)

0.01

1.98

8.81

4.63

May 23rd, 2023 (Day 2)

0.10

5.11

28.32

14.57

May 24th, 2023 (Day 3)

0.78

12.43

57.45

30.26

May 25th 2023 (Day 4)

45.20

171.71

169.94

137.28


It is clear from the above table that while the retail portion and the NII / HNI portion got fully subscribed on the first day of the IPO itself. Only the QIB subscription happened only on the last day as is the norm. However, the overall IPO was fully subscribed on the first day itself although most of the traction was seen on the last day. All the 3 categories of investors viz., HNIs / NIIs, retail and QIB categories saw good traction and build-up of interest on the last day of the IPO. There is an allocation of 322,000 shares to SS Corporate Securities Ltd for market making, which has been included in the HNI / NII quota.

The IPO of Crayons Advertising opened for subscription on 22nd May 2023 and closed for subscription on 25th May 2023 (both days inclusive). The basis of allotment will be finalized on 30th May 2023 and the refunds will be initiated on 31st May 2023. In addition, the demat credits are expected to happen on 01st June 2023 and the stock is scheduled to list on 02nd June 2023 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated.

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.

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