Veritaas Advertising IPO will open for subscription on Monday, May 13, and will close on Wednesday, May 15. The issue’s price band has been fixed in the range of ₹109 to ₹114 per share. The IPO lot size for Veritaas Advertising is 1,200 shares.
The equity share allocation is as follows: Market Maker is allotted up to 37,200 equity shares; Non-Institutional Investors (NII) is allotted up to 1,06,800 equity shares; Retail Individual Investors (RII) is allotted up to 2,48,400 equity shares; and QIB Anchor Portion is allotted up to 1,74,000 equity shares.
The company provides 360-degree services across several channels as an integrated advertising agency. Being one of the few media companies that owns marketing and advertising firms, the company has advertisement spaces in West Bengal, Guwahati, and Shillong. The company is also active in Pune, Mumbai, and Delhi. The business operates and places advertisements on outdoor hoardings and police booths, which lessens their reliance on other parties and allows them to provide integrated services.
The company’s listed peers are Crayons Advertising Ltd (with a P/E of 24.74), and Maagh Advertising & Marketing Services Ltd (with a P/E of 11.41).
The company’s revenue was ₹786.75 lakhs, its EBITDA was ₹104.96 lakhs, and its PAT was ₹43.89 lakhs in FY23. The company generated revenue of ₹903.97 lakhs, EBITDA of ₹258.68 lakhs, and PAT of ₹156.79 lakhs up till February 10th, 24.
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Veritaas Advertising IPO details
Veritaas Advertising IPO, which is worth about ₹8.48 crore, consists of a fresh issue of 744,000 equity shares with a face value of ₹10. There is no offer-for-sale component.
The net proceeds of the issue will be used by the company for the following purposes: financing the capital expenditure for the establishment of new police booths in West Bengal, Assam, Maharashtra, and Delhi; financing the capital expenditure for the establishment of traffic signal point displays in Kolkata, Mumbai, and Pune through Pole Kiosks; and financing general corporate purposes.
The Veritaas Advertising IPO’s book running lead manager is Horizon Management Private Limited, while the issue’s registrar is Mas Services Limited. The Veritaas Advertising IPO is being market-made by Horizon Financial Consultants.
Tentatively, Veritaas Advertising IPO basis of allotment of shares will be finalised on Thursday, May 16 and the company will initiate refunds on Friday, May 17, while the shares will be credited to the demat account of allottees on Friday. Veritaas Advertising IPO shares are likely to be listed on NSE SME on Tuesday, May 21.
According to Manav Goenka, President of Operations at Horizon Management Private Limited, Veritas Advertising Limited has established a strong presence in the advertising sector. Their potential for expansion is demonstrated by their strategic focus on utilising outdoor hoardings and police booth ads in addition to their extensive service offering.
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Veritaas Advertising IPO GMP today
Veritaas Advertising IPO GMP today or grey market premium is +55. This indicates Veritaas Advertising share price were trading at a premium of ₹55 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Veritaas Advertising share price was indicated at ₹169 apiece, which is 48.25% higher than the IPO price of ₹114.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
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