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19 January 2024

Graphisads IPO: Navigating the Creative Wave in Marketing and Advertising

Introduction:

Graphisads Limited, a seasoned player in the marketing, advertising, and communications sector, recently set sail into the capital market with its Initial Public Offering (IPO). The IPO, which was a fixed price issue of Rs 53.41 crores, witnessed significant investor interest. In this blog, we delve into the details and performance metrics of Graphisads, shedding light on its foray into the market and the journey post-listing.

Key Dates:

Bidding Period	November 30 to December 5, 2023
Allotment Date	December 8, 2023
Listing Date	December 13, 2023

IPO Highlights:

Issue Size	Price per Share	Lot Size	Minimum Investment
₹53.41 Crores	₹111	1200 Shares	₹133,200 for retail investors

Financial Overview:

Total Issue Size	Fresh Issue
4,812,000 shares, aggregating up to ₹53.41 Cr	4,812,000 shares

Shareholding Structure:

Pre-Issue Shares	Post-Issue Shares
13,464,500	18,276,500

Market Maker Segment:

Rikhav Securities	242,400 shares

IPO Management:

Lead Manager	Registrar	Market Maker
First Overseas Capital Limited	Kfin Technologies Limited	Rikhav Securities

Subscription Highlights:

The Graphisads IPO received a subscription of 3.86 times, showcasing robust interest across various investor categories. Retail investors exhibited strong enthusiasm with a subscription of 5.52 times, while Non-Institutional Investors (NII) subscribed 2.01 times. Qualified Institutional Buyers (QIBs) also participated actively.

IPO Journey Timeline:

IPO Open Date	IPO Close Date	Basis of Allotment	Refunds Initiation	Shares Credited to Demat	Listing Date
November 30, 2023	December 5, 2023	December 8, 2023	December 11, 2023	December 12, 2023	December 13, 2023

Lot Size Details:

Investors had the flexibility to bid for a minimum of 1200 shares, with the following investment parameters for retail investors and High Net Worth Individuals (HNIs):

Application	Lots	Shares	Amount
Retail (Min)	1	1200	₹133,200
Retail (Max)	1	1200	₹133,200
HNI (Min)	2	2400	₹266,400

Graphisads IPO Reservation:

The IPO featured a reservation of 4,812,000 shares, allocating portions to Non-Institutional Investors (NII), Retail Individual Investors (RII), and Market Makers.

About Marinetrans India Limited:

Established in 1987, Graphisads Limited has been a stalwart in providing marketing, advertising, and communications services. The company functions as an ad-tech communication solutions platform and offers a diverse range of services:
- Media Services: Developing media plans and strategies for various clients.
- Events: Providing customized event solutions, including concept, design, development, and execution.
- Creative Services: Planning and execution of creative ideas, spanning advertising, audio/video, print production, virtual tours, documentary production, etc.
- Digital Marketing: Offering a suite of digital marketing services, including search engine marketing, social media management, web development, and SEO.
- Outdoor Media: Providing outdoor advertising services through various mediums such as traffic police stands, public utility stands, vending stands, benches, trash cans, information boards, etc.
As of June 30, 2023, Graphisads Limited boasts a team of 92 dedicated employees.

Financial Overview:

As of June 30, 2023, Graphisads displayed a financial snapshot:

Metric	Values
Assets	₹11,626.82 Lakhs
Revenue	₹2,602.48 Lakhs
Profit After Tax	₹206.45 Lakhs
Net Worth	₹4,492.76 Lakhs
Reserves and Surplus	₹3,146.31 Lakhs

Key Performance Indicators:

- Market Capitalization: ₹202.87 Crores
- Return on Equity (ROE): 12.99%
- Return on Capital Employed (ROCE): 14.69%
- Return on Net Worth (RoNW): 12.99%

Objects of the Issue:

The funds raised through the IPO will be utilized for:

- Repayment of certain borrowings. - Meeting the Working Capital requirements. - General Corporate Expenses. - Issue Expenses.

Conclusion:

Graphisads Limited, with its extensive experience in the marketing and advertising domain, entered the market with a well-received IPO. However, industry experts have raised concerns regarding the aggressive pricing based on FY24 annualized super profits. Investors are advised to carefully consider the company's future prospects and make informed decisions. As Graphisads charts its course on the NSE SME platform, the company's ability to leverage its creative prowess in the dynamic advertising landscape will play a crucial role in its future success.

Read More IPO related blogs - Marinetrans India IPO