Adcounty Media India, a BrandTech company, has made a significant mark in the Indian IPO landscape with its book-built issue amounting to ₹50.68 crores. The IPO, which opened for subscription on June 27, 2025, and closed on July 1, 2025, saw enthusiastic investor participation, resulting in a subscription of 27.89 times on the final day. The shares are now expected to be listed on the BSE SME platform on July 4, 2025, with the IPO price band set between ₹80 and ₹85 per equity share.

This IPO by Adcounty Media India Limited comprises a fresh issue of 59.63 lakh equity shares, with a face value of ₹10 each. The market capitalisation of the company at the upper price band of ₹85 stands at ₹191.26 crore. Retail investors were required to invest a minimum of ₹1,36,000, representing one lot of 1,600 shares, whereas HNIs had to invest at least ₹2,72,000 (two lots).

The lead manager to the issue is NARNOLIA FINANCIAL SERVICES LIMITED, with SKYLINE FINANCIAL SERVICES PRIVATE LIMITED acting as the registrar. The role of market maker is being fulfilled by Prabhat Financial Services Limited, ensuring post-listing liquidity on the SME platform.

IPO Performance and Subscription Details

The response to Adcounty Media India IPO has been overwhelming, as reflected in the live subscription data as of 11:00 AM on July 1, 2025, where the IPO was subscribed 27.89 times. This includes robust participation from retail investors, HNIs, and institutional investors, clearly indicating market confidence in the company’s business model and future prospects.

Moreover, the company managed to raise ₹14.33 crore from anchor investors on June 26, 2025, by allocating 16,86,400 shares at ₹85 per share. These shares were allotted from the Qualified Institutional Buyers (QIBs) reservation portion, as per standard norms.

Grey Market Premium and GMP Trend

The Grey Market Premium (GMP) of the IPO was hovering at around ₹19, indicating an expected listing price of ₹104, which is a 22.22% premium over the upper band of the issue price. While GMPs are unofficial and vary based on demand-supply dynamics, they do offer a speculative look into the expected listing gains.

However, investors must understand that GMP trends are not regulated, and actual listing performance could vary based on broader market sentiments and institutional activity. Therefore, reliance on GMPs should be cautious and ideally combined with a thorough review of company fundamentals.

Allotment Status and Listing

The IPO allotment date for Adcounty Media India is scheduled on July 2, 2025. Investors can check their allotment status on the registrar’s website by entering details like application number, PAN, or DP Client ID. The company aims to credit shares to demat accounts by July 3, 2025, with BSE SME listing expected on July 4, 2025.

Objectives of the IPO

The company has laid out a clear plan for the utilization of IPO proceeds, which are as follows:

• ₹1,400 lakh will be used for capital expenditure to enhance technological infrastructure.

• ₹2,500 lakh has been earmarked to meet working capital requirements to sustain and scale operations.

• Remaining proceeds will go towards unidentified acquisition opportunities and general corporate purposes.

Company Background and Industry Positioning

Adcounty Media India positions itself as a BrandTech company delivering end-to-end solutions in the advertising and marketing space. From branding to performance optimisation, the company has built a strong client base across industries. Its focus on customised advertising solutions using modern technology makes it a strategic player in the digital marketing ecosystem.

The leadership team, including Mr. Chandan Garg, Mr. Aditya Jangid, Mr. Abbhinav Rajendra Jain, Mr. Delphin Varghese, and Ms. Vartika Dangayach, brings over 10 to 20 years of experience each in IT, media planning, sales, operations, and business development. This diversified leadership enables Adcounty Media India to stay competitive and agile in a dynamic industry.

Financial Performance

The company has shown consistent revenue growth, with total revenues from operations at:

• ₹6,958.04 lakh in FY25

• ₹4,324.28 lakh in FY24

• ₹5,364.02 lakh in FY23

Similarly, EBITDA stood at:

• ₹1,893.69 lakh in FY25

• ₹1,138.49 lakh in FY24

• ₹1,047.94 lakh in FY23

Profit after tax improved steadily to:

• ₹1,375.01 lakh in FY25

• ₹828.23 lakh in FY24

• ₹763.50 lakh in FY23

Key metrics further reinforce financial strength:

• Pre-issue EPS: ₹8.37

• Post-issue EPS: ₹6.11

• Pre-issue P/E: 10.15x

• Post-issue P/E: 13.91x

• Industry average P/E: 25x

• ROCE (FY24): 47.27%

• ROE (FY24): 47.28%

• RoNW: 47.28%

These numbers suggest that the IPO is fairly priced and supported by strong returns on capital and equity.

Risk Consideration and Expert Recommendation

Despite strong subscription and promising GMP, it’s crucial to remember that SME IPOs carry higher volatility and liquidity risk post-listing. The positive GMP hints at listing gains, but medium to long-term success depends on execution of growth plans and industry dynamics.

Market experts have given a "high-risk apply for listing gain" rating, suggesting that risk-tolerant investors may consider applying for potential short-term gains, but long-term positions should be taken with caution.

Final Thoughts

The Adcounty Media India IPO has generated significant buzz in the SME IPO space due to its strong financials, experienced promoters, and robust investor interest, including a solid response from anchor investors. While the GMP indicates premium listing, investors must evaluate their risk appetite before investing, especially in a volatile and competitive digital media space.

The IPO also aligns with India's growing digital advertising and BrandTech ecosystem, offering a scalable business model that could benefit from increasing digital penetration and brand awareness among consumers.

To conclude, the Adcounty Media India IPO appears to be fairly priced with short-term listing gain potential, backed by strong fundamentals and market sentiment. However, as always, investors must consult financial advisors before making investment decisions.

Disclaimer:
This article is for educational and informational purposes only and not financial advice. Investment in securities market is subject to market risk. Past performance is not indicative of future results. Always read the offer documents carefully and consult your investment advisor before making investment decisions.

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