Crayons Advertising files for IPO

Mumbai: Crayons Advertising, India’s leading integrated and innovative advertising agency, on Tuesday announced the filing of its Draft Red Herring Prospectus (DRHP) with NSE Emerge for its initial public offering. The company plans to offer 64.30 lakh equity shares of face value Rs10 each through the book-building process. Corporate Capital Ventures is the book-running lead manager to the issue. While Skyline Financial Services Is Registrar of the issue.

Promoted by Kunal Lalani, Crayons Advertising is a three-and-a-half-decade-young, award-winning, and integrated firm that provides a high-end ecosystem comprising an end-to-end ad-tech communication solutions platform for advertising media services. Its services span brand strategy, creative solutions, events &activations, digital media and traditional media planning and buying. The proceeds from the initial public offering will be used in building infrastructure and cutting-edge technology for expansion (Rs15.28crore) and funding working capital requirements (Rs14.50 crore).

Talking to Bizz Buzz, Kunal Lalani, Founder & Managing Director, Crayons Advertising, says, “The advertising sector is expected to greatly benefit from India’s rapid economic growth.” Infrastructure, banking & financial services (including fintech), Tourism, Government departments & the MSME and large homegrown players are expected to command a larger share of ad budgets in the coming years,” he said.

The Indian advertising market was valued at nearly Rs67,000 crore in 2020 by Expert Market Research. The market is expected to grow at a CAGR of 11 per cent during the forecast period of 2022-27 to reach Rs1,25,300 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 in2022 and ad spending that will increase by 15.2 per cent in 2023 and 15.7 percent in 2024.

Recently, the company announced that it won marquee mandates, including Tata Sons, National Skill Development Corporation, IndianOil Corporation, TATA Croma and Bank of Baroda. The mandate of the National Skill Development Corporation is to transform the brand notion and strengthen the connection with youth. The agency’s experience in handling government businesses played a vital role in the final selection for taking over its social media mandate. Within the Tata Group Companies, Crayons recently bagged the social media mandate for Tata Sons. In the last couple of years, the agency has handled and executed multiple prestigious campaigns for the Tata Group. 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.