Cash Ur Drive Marketing Limited, established in 2009, is among the pioneers in India’s transit media advertising sector. With a unique model of branding on wheels, the company leverages cabs, autos, buses, and commercial vehicles to bridge the gap between brands and consumers. It has now taken a significant step forward with the launch of its Initial Public Offering (IPO), which opened on 31 July 2025 and will close on 04 August 2025.

The IPO is a Book Built Issue worth ₹60.79 Crores, comprising a Fresh Issue of ₹58.09 Crores (44.69 lakh shares) and an Offer for Sale worth ₹2.69 Crores (2.07 lakh shares). The price band for the shares has been set at ₹123 to ₹130 per equity share. Based on the upper band of ₹130, the company's market capitalization stands at ₹229.39 Crores.

The lot size for the IPO is 1,000 shares, and the minimum investment for retail investors is 2 lots (2,000 shares), translating to an investment of ₹2,60,000.

Strong financial growth with consistent profitability

Cash Ur Drive Marketing Limited has demonstrated a strong financial track record. The revenue from operations rose from ₹81.31 Crores in FY23 to ₹97.76 Crores in FY24 and further to ₹142.18 Crores in FY25. Correspondingly, the EBITDA improved from ₹7.32 Crores in FY23 to ₹12.82 Crores in FY24 and touched ₹23.52 Crores in FY25. The Profit After Tax was ₹5.14 Crores in FY23, ₹9.21 Crores in FY24, and ₹7.67 Crores in FY25, showing a resilient earnings profile.

The pre-issue EPS stands at ₹14.16, and the post-issue EPS is estimated at ₹4.35. The P/E ratio before the issue is 9.18x, which rises to 29.88x post-issue, compared to the industry average P/E of 24x. The Return on Capital Employed (ROCE) for FY24 is 41.55 percent, and the Return on Equity (ROE) is 44.43 percent, indicating a healthy capital efficiency.

IPO Subscription and Grey Market Premium

On Day 2 (01 August 2025, 12:00 PM) of the subscription period, the IPO was subscribed 1.48 times, indicating good investor interest in this SME public issue. The Grey Market Premium (GMP) stood at ₹20, suggesting a listing gain of 15.38 percent over the upper price band of ₹130.

It’s worth noting that GMP is unofficial and unregulated, often used for speculative insights. While it reflects market sentiment, actual listing prices may vary based on real-time demand and broader market conditions.

Anchor Investors boost confidence

Cash Ur Drive Marketing raised ₹17.19 Crores from Anchor Investors by allotting 13,22,000 equity shares at the upper price band of ₹130 per share. The support of anchor investors adds to the credibility of the issue and often acts as a confidence booster for retail and institutional investors.

The anchor portion is carved out of the Qualified Institutional Buyers (QIBs) category. Their participation, particularly at the upper end of the price band, indicates strong institutional faith in the company’s growth story.

Allotment, listing, and registrar details

The allotment date for the IPO is expected to be on or about 05 August 2025 (Tuesday). Investors can check their allotment status on the Bigshare Services Pvt Ltd website, the official registrar for the IPO. The listing is tentatively scheduled on the NSE SME platform on or around 07 August 2025 (Thursday).

Here’s how to check allotment status:

• Visit the IPO allotment status page on the registrar’s website.

• Select Cash Ur Drive Marketing Limited IPO from the dropdown.

• Enter your Application Number, PAN, or DP Client ID.

• Click Submit to view the status.

Use of IPO proceeds

Cash Ur Drive Marketing plans to utilise the Net Proceeds from the Fresh Issue for the following purposes:

• ₹5.31 Crores to be invested in upgrading technology infrastructure

• ₹5.97 Crores earmarked for capital expenditure requirements

• ₹33 Crores allocated to fulfil working capital needs

• Remaining balance to be used for general corporate purposes

These allocations show that the company is focused on expansion, technological integration, and sustaining growth.

Leadership and business model

The success of the company can be attributed to Mr. Raghu Khanna, the Managing Director and Promoter, who brings 15 years of experience in media and advertising. Under his leadership, Cash Ur Drive Marketing has become a leading name in the transit advertising space, offering impactful branding solutions to top brands across India.

Their unique approach of branding on wheels allows advertisers to reach target audiences directly and effectively. Whether it's taxis, buses, or autos, these mobile units serve as moving billboards, ensuring high visibility and mass penetration.

GMP Trend and investor recommendation

On 30 July 2025, the GMP stood at ₹20, which translates into an expected listing price of ₹150, a 15.38 percent premium over the IPO price. This upward trend in GMP makes the IPO attractive for those seeking short-term listing gains.

However, given the high post-issue P/E of nearly 30x, risky investors should consider this IPO with caution, especially if planning long-term investment. The fundamentals are solid, but the valuation leaves less room for error.

Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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