Crayons Advertising announces plans to double revenues; files DRPH with NSE Emerge for IPO

On February 20, the company filed its Draft Red Herring Prospectus (DRHP) with NSE Emerge for initial public offering (IPO).

Upon listing, Crayons will be India’s first major homegrown advertising agency to go public, the company said.

“In the past few years, we have consistently invested in our capabilities – comprising of people, processes, partners and performance,” said Kunal Lalani, Founder and Managing Director, Crayons Advertising.

“Today, we are aiming for an orbital shift, given our integrated proposition, the strong economic tailwinds for the advertising sector and sustained mandate flow in our digital and events verticals. We are raising funds to build further our digital capabilities, which will enable us to not only cater to the brands in Bharat but also offer our new-age tech-led solutions to the world going forward,” added Kunal.

About the IPO, the company said it plans to offer 64.30 lakh Equity Shares of face value Rs 10/- each through the book-building process.

Corporate Capital Ventures is the book-running lead manager to the issue. While Skyline Financial Services is Registrar to the issue.

The proceeds from the initial public offering will be used in building infrastructure and cutting-edge technology for expansion (Rs. 15.28 crore) and funding working capital requirements (Rs. 14.50 crore).

Crayons Advertising’s services span from brand strategy, creative solutions, events & activations, digital media and traditional media planning and buying.

The Indian advertising market was valued at nearly Rs 67,000 crore in 2020 by Expert Market Research. The market is expected to grow at a CAGR of 11% during the forecast period of 2022-27 to reach Rs 1,25,300 crore by 2026.

The Indian advertising market will remain the fastest growing in the world over the next two years, as per a new report by Dentsu International.

With a growth rate of 16 percent in 2022 and ad spending that will increase by 15.2 percent in 2023 and 15.7 percent in 2024.

Recently, the company announced that it won marquee mandates, including Tata Sons, National Skill Development Corporation, Indian Oil Corporation, Tata Croma and Bank of Baroda.

Within the Tata Group Companies, Crayons recently bagged the social media mandate for Tata Sons.

It has handled and executed multiple prestigious campaigns for the Tata Group in the last couple of years, the company said.

Crayons also worked on the Tata Mumbai Marathon campaign, which serves as a case study in awareness and engagement. Furthermore, in the past year, Crayons Advertising was appointed by Tata to launch the historic Air India transition campaign ‘Wings of Change’ and handle Tata Croma’s creative mandate.