Veritaas Advertising IPO Review - Issue Date, Price, GMP, Allotment, Lot Size, and Details

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:

  1. Funding the capital expenditure towards setting up of new Police Booths in West Bengal, Assam, Maharashtra and Delhi.
  2. Funding the capital expenditure in Pole Kiosks for setting up of traffic signal point display in Kolkata, Mumbai and Pune
  3. General Corporate Purposes.

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

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

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)

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

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

Share Holding Pre Issue 88.74%
Share Holding Post Issue 65.36%

About Veritaas Advertising Limited

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:

  • OOH
  • Transit Media
  • Events

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:

  • RETAIL BRANDING
  • EVENT MANAGEMENT
  • TRANSIT MEDIA
  • OOH MEDIA

Veritaas Advertising Limited Financial Information (Restated Consolidated)

Amount in (Rs. Crore)

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

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

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 Contact Details

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

Veritaas Advertising IPO Registrar and Lead Manager(s)

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 IPO Review

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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