Veritaas Advertising IPO, valued at Rs 8.48 crores, consists entirely of a fresh issue comprising 7.44 lakh shares. Opening for subscription on May 13, 2024, and closing on May 15, 2024, the IPO is anticipated to conclude its allotment process by Thursday, May 16, 2024.
Scheduled to list on NSE SME by Tuesday, May 21, 2024, Veritaas Advertising offers shares within a price band of ₹109 to ₹114 per share. The minimum lot size for application stands at 1200 shares, requiring a minimum investment of ₹136,800 for retail investors and 2 lots (2,400 shares) amounting to ₹273,600 for HNIs.
Horizon Management Private Limited serves as the book running lead manager, while Mas Services Limited acts as the registrar for the issue. Horizon Financial Consultants assumes the role of the market maker for the Veritaas Advertising IPO.
Company proposes to utilize the Net Proceeds from the Issue towards the following objects:
The company believes that police booth advertisements draw significant attention of the target audience, on account of widespread presence in diverse areas of a city. Owing to the efficacy of this advertisement segment, they have significantly invested in advertisements through police booths at towns /cities of West Bengal, Guwahati and Shillong, thereby making it one of their main business verticals.
The company is proposing to invest in Pole Kiosks by setting of traffic signal point display. Pole Kiosks is the perfect way to change branding game and increase recall. They are expressive, and engaging and create a long-lasting impression on targeted customers. The accurately designed pole kiosk can fetch more customers than any other type of targeted marketing activity.
Veritaas Advertising IPO Details |
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| IPO Date | May 13, 2024 to May 15, 2024 | ||||||||||
| Listing Date | May 21, 2024 | ||||||||||
| Face Value | ₹10 per share | ||||||||||
| Price | ₹109 to ₹114 per share | ||||||||||
| Lot Size | 1200 Shares | ||||||||||
| Total Issue Size | ₹8.48 Cr | ||||||||||
| Fresh Issue | 744,000 shares (aggregating up to ₹8.48 Cr) | ||||||||||
| Offer for Sale | Nil | ||||||||||
| Issue Type | Book Built Issue IPO | ||||||||||
| Listing At | NSE SME | ||||||||||
| Share holding pre issue | 2,079,000 | ||||||||||
| Share holding post issue | 2,823,000 | ||||||||||
Veritaas Advertising IPO Lot Size |
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| Application | Lots | Shares | Amount | ||||||||
| Retail (Min) | 1 | 1200 | ₹136,800 | ||||||||
| Retail (Max) | 1 | 1200 | ₹136,800 | ||||||||
| HNI (Min) | 2 | 2,400 | ₹273,600 | ||||||||
Veritaas Advertising IPO Timeline (Tentative Schedule) |
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| IPO Open Date | Monday, May 13, 2024 | ||||||||||
| IPO Close Date | Wednesday, May 15, 2024 | ||||||||||
| Basis of Allotment | Thursday, May 16, 2024 | ||||||||||
| Initiation of Refunds | Friday, May 17, 2024 | ||||||||||
| Credit of Shares to Demat | Friday, May 17, 2024 | ||||||||||
| Listing Date | Tuesday, May 21, 2024 | ||||||||||
| Cut-off time for UPI mandate confirmation | 5 PM on May 15, 2024 | ||||||||||
Veritaas Advertising IPO Reservation |
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| Investor Category | Shares Offered | Reservation % | |||||||||
| Anchor Investor Shares Offered | 174,000 (23.39%) | ||||||||||
| Market Maker Shares Offered | 37,200 (5.00%) | N/A | |||||||||
| QIB Shares Offered | 177,600 (23.87%) | N/A | |||||||||
| NII (HNI) Shares Offered | 106,800 (14.35%) | N/A | |||||||||
| Retail Shares Offered | 248,400 (33.39%) | N/A | |||||||||
| Total Shares Offered | 744,000 (100%) | N/A | |||||||||
Veritaas Advertising IPO Promoter Holding |
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| Share Holding Pre Issue | 88.74% | ||||||||||
| Share Holding Post Issue | 65.36% | ||||||||||
Veritaas Advertising IPO Subscription Status |
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| Investor Category | Shares Offered | Shares Bid For | No oF Times Subscribed | ||||||||
Veritaas Advertising Limited is an integrated advertising agency offering 360-degree services across multiple platforms. They own advertisement spaces in West Bengal, Guwahati and Shillong also operating in Delhi, Mumbai and Pune. The company operate/advertise in police booths and outdoor hoardings, which reduces dependence on third parties enabling them to offer integrated services. The company offers marketing and advertising services through the following platforms:
The company builds creative stories around brands to enhance their ROI. Advertising services allows clients to monetize their marketing collaterals and generate revenues and acts as a differentiator.
They provide high-end ecosystem and end-to-end advertising solutions platform for advertising media services consisting of Brand Strategy, Events, Outdoor (OOH) Media services which covers advertisement modes such as police booth hoardings, Newspapers insertions, Brochures, and display of Outdoor Hoardings, etc.
Some of the clients are:
Honda, TVS, P.C.CHANDRA, MITSUBISHI ELECTRIC, RAIPUR ELECTRONICS, Ultratech Cement, GreenPly, etc.
MARKETING AND ADVERTISING:
| Period Ended | 10th Feb 24 | 31st Mar 23 | 31st Mar 22 | 31st Mar 21 |
|---|---|---|---|---|
| Reserve of Surplus | 1.46 | 0.81 | 0.37 | 0.24 |
| Total Assets | 9.27 | 5.31 | 2.69 | 1.52 |
| Total Borrowings | 2.28 | 1.34 | 0.75 | 0.00 |
| Fixed Assets | 2.97 | 0.69 | 0.08 | 0.02 |
| Cash | 0.22 | 0.34 | 0.36 | 0.06 |
| Net Borrowing | 2.07 | 1.00 | 0.39 | -0.06 |
| Revenue | 9.03 | 7.75 | 3.37 | 2.30 |
| EBITDA | 2.59 | 1.05 | 0.24 | 0.27 |
| PAT | 1.57 | 0.44 | 0.13 | 0.20 |
| EPS | 7.54 | 48.77 | 13.98 | 197.20 |
Key Performance Indicator |
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| KPI | Values | ||||||||||
| EPS Pre IPO (Rs.) | 2.11 | ||||||||||
| EPS Post IPO (Rs.) | 6.06 | ||||||||||
| P/E Pre IPO | 54.00 | ||||||||||
| P/E Post IPO | 18.82 | ||||||||||
| ROE | 48.99% | ||||||||||
| ROCE | 36.06% | ||||||||||
| P/BV | 6.69 | ||||||||||
| Debt/Equity | 0.64 | ||||||||||
| RoNW | 48.99% | ||||||||||
Veritaas Advertising Limited IPO Peer Comparison |
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| Company Name | EPS | ROCE | ROE | P/E (x) | P/Bv | Debt/Equity | RoNW (%) | ||||
| Veritaas Advertising Limited | 2.11 | 36.06% | 48.99% | 54 | 6.69 | 0.64 | 48.99% | ||||
| Crayons Advertising | - | 38.4% | 33.2% | 21.7 | 3.59 | 0.05 | 38.4% | ||||
| Maagh Advertising & Marketing Services Ltd | 0.11 | 7.87% | 5.56% | 219 | 13.3 | 0.00 | 7.87% | ||||
VERITAAS ADVERTISING LIMITED
38/2A, Gariahat South Road, Dhakuria, Rash Behari Avenue, Kolkata - 700 029, West Bengal, India.
Tel: +91 33 4044 6683
Email: info@veritaasadvertising.com
WEBSITE: www.veritaasadvertising.com
MAS Services Limited
T-34, 2nd Floor, Okhla Industrial Area, Phase-II New Delhi- 110 020, Delhi, India.
Telephone: +91 112 638 7281/83, 114 132 0335
E-mail: ipo@masserv.com
Website: https://www.masserv.com/
Veritaas Advertising Ltd. (VAL) is a full-service advertising agency with its own ad spaces in West Bengal, Guwahati, and Shillong, alongside operations in Delhi, Mumbai, and Pune. Offering diverse services across platforms, it minimizes reliance on third parties by advertising in police booths and outdoor hoardings. Despite a promising creative portfolio, its recent financials show fluctuating performance, with an average EPS of Rs. 1.52 and RoNW of 46.75%. The issue is priced at a high P/BV of 6.69 based on NAV of Rs. 17.05 as of February 10, 2024. While FY24 shows significant growth, aggressive pricing, competition, and absence of dividends warrant cautious investment with a moderate allocation for medium-term gains.
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