Crayons Advertising Ltd’s SME initial public offer (IPO) was fully subscribed within hours of opening on day one – at 4.62 times so far, on the back of high bidding by retail investors, according to subscription data on the stock exchanges. The advertising agency’s IPO opened for bidding on May 22 and will close for subscription on May 25.
On Monday, retail individual investors (RII) showed overwhelming interest as the portion reserved for them was subscribed 8.79 times – the highest among the three groups of investors. The portion set aside for the qualified institutional buyers or QIB was subscribed 0.01 per cent, while the portion reserved for the non-institutional individual investors was subscribed 1.97 times as of 7:15 pm, as per data available at chittorgarh.com.
Crayon Advertising’s ₹41.79 crore IPO is a complete fresh issue of 64.30 lakh shares with no offer-for-sale (OFS) component.
Of the total 64.30 lakh equity shares issued, 30.52 lakh shares have been set aside for QIBs, 9.18 lakh shares for high net worth individuals (HNIs), and 21.38 shares would be made available to the general public.
The company has fixed the price band at ₹62 to ₹65 per equity share for the proposed IPO. Through the book-building process, the company would issue 64.30 lakh equity shares with a face value of ₹10 apiece. The advertising company would raise ₹41.79 crore at the upper price band of the issue.
The company intends to utilize the net fresh issue proceeds for the funding of working capital requirements, capital expenditure on infrastructure and cutting-edge technology for expansion, and for general corporate expenses.
It would become the first significant in-house integrated advertising company in India to list on exchanges following the IPO, and it will be listed on NSE Emerge. The issue’s lead manager is Corporate Capital Venture, and the registrar is Skyline Financial Service.
The company’s shares are scheduled to be alloted on May 30 and listed on the NSE’s SME platform on June 2.
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