Creative Graphics Solutions India IPO Review

Creative Graphics Solutions India IPO

Creative Graphics Solutions Limited is coming up with an IPO worth INR 54.40 crores, consisting of a fresh issue of 64.00 lakh shares. The company plans to use the funds raised to meet the working capital requirements, repay borrowings, capital expenditure, inorganic growth, and general corporate purposes.

Creative Graphics Solutions Limited IPO – Important Dates 

Creative Graphics Solutions IPO DateMarch 28, 2024 to April 4, 2024
Creative Graphics Solutions IPO Listing DateApril 9, 2024
Creative Graphics Solutions IPO PriceINR 80 to 85 per share
Creative Graphics Solutions IPO Lot Size1600 Shares
Creative Graphics Solutions IPO Total Issue SizeINR 54.40 crores
Creative Graphics Solutions IPO Basis of AllotmentApril 5, 2024
Creative Graphics Solutions IPO Initiation of RefundsApril 8, 2024
Creative Graphics Solutions IPO Credit of Shares to DematApril 8, 2024
Creative Graphics Solutions IPO Issue TypeBook Built Issue IPO
Creative Graphics Solutions IPO Listing AtNSE SME

Creative Graphics Solutions India Ltd IPO  – Company Profile

Creative Graphics is a pre-press company, engaged in the manufacturing of flexographic printing plates including Digital Flexo Plates, Conventional Flexo Printing Plates, Letter Press Plates, Metal Back Plates, and Coating Plates. The company is serving customers across India as well as outside India namely African Countries, Thailand, Qatar, Kuwait, and Nepal. 

Beyond the core business, the company has expanded its horizons through its two wholly owned subsidiaries, which are: – 

1. Creative Graphics Premedia Private Limited 

2. Wahren India Private Limited 

Creative Graphics Premedia Private Limited (Hereinafter referred to as “CG Premedia”): CG Premedia is an end-to-end provider of media services, from design adaptation to print production. CG Premedia collaborates and strategizes directly with various brands to provide services in artwork, prepress, mock-ups, and 3-D packshots.

Wahren India Private Limited is a diversified arm of the Creative Graphics group with the intent to provide high-quality packaging solutions for the pharmaceutical industry. Wahren India is primarily dedicated to the production of Alu-Alu Foil, Blister Foil, Tropical Alu-Alu Foil, CR Foil, and Pharmaceutical Sachet.

Creative Graphics Solutions India Limited IPO Review

ParticularAs of 31 March 2022As of 31 March 2023As of 30 September 2023
Revenue (₹ in lakhs)6,831.114,806.534,806.53
Equity (₹ in lakhs)1,008.601,872.752,550.90
Expenses (₹ in lakhs)6,243.907,980.223,902.54
Profit and Loss After Tax (₹ in lakhs)465.05864.15724.07
Diluted EPS only (₹)6211556
Return on Net Worth (%)46.1045.4228.38
NAV per Equity Share (₹)134.48249.70172.62
Total Assets (in lakhs)4,497.406,600.0710,031.29
Total Liabilities (in lakhs) 3,488.804,727.327,480.39
Debt Equity Ratio (in times) 0.941.221.76
Current Ratio (in times) 1.091.241.39

Creative Graphics Solutions India IPO Fundamental Analysis

Creative Graphics Solutions Limited’s IPO’s financial analysis reveals a mixed picture. While there are positive signs such as improving profitability and shareholder returns, concerns arise from declining revenue and rising debt levels. Potential investors should conduct thorough due diligence before considering investment in the IPO.

  • 1. Revenue Trend: The revenue decreased from ₹6,831.11 lakhs in March 2022 to ₹4,806.53 lakhs in March 2023 and remained the same by September 2023. This trend suggests a decline in sales or business performance.
  • 2. Equity and Liabilities: The equity has increased steadily, indicating potential growth and investor confidence. However, total liabilities have also increased, resulting in a rising debt-equity ratio, which may pose financial risks.
  • 3. Profitability: The company’s profitability has shown improvement, with a significant increase in profit after tax from ₹465.05 lakhs in March 2022 to ₹864.15 lakhs in March 2023, although it slightly decreased to ₹724.07 lakhs by September 2023. This indicates varying levels of profitability over time.
  • 4. Earnings per Share (EPS): The diluted EPS has also improved over time, indicating potential earnings growth and shareholder value creation.
  • 5. Return on Net Worth (RoNW): The RoNW has fluctuated but remained relatively healthy, indicating the company’s ability to generate returns on shareholder equity.
  • 6. Financial Position: Total assets have increased significantly, indicating potential business expansion or asset acquisition. The current ratio has also improved, reflecting better liquidity and ability to meet short-term obligations.

Creative Graphics Solutions India Ltd IPO Peer Comparison

Creative Graphics Solution India Limited believes that none of the listed companies in India offer exclusively the flexographic plates. Hence a strict comparison is not possible.

Creative Graphics Solutions India Ltd IPO Objective

The main objective of Creative Graphics Solutions Limited is to utilize IPO funds for working capital needs (INR 15 crores), repaying borrowings (INR 11 crores), capital expenditure (INR 10 crores), identified acquisitions (INR 5 crores), and general corporate purposes.

  1. To meet the working capital requirement: To support the incremental business requirements, the company requires additional working capital. The company proposes to utilise INR 15 crores for the said purpose.
  1. To repay the borrowings: The company plans to repay in full or part certain borrowings of the company and for the said purpose the company plans to utilize INR 11 crores.
  1. To meet capital expenditure: The company intends to increase the capacities in the product portfolio. The company plans to utilize INR 10 crores out of the Net Proceeds towards the purchase of machinery for the existing production facilities in the Noida Unit, Chennai Unit, and Vasai Unit, India, and to increase the automated processes.
  1. To meet the organic growth by identified acquisitions: The company intends to use INR 5 crores of the Net Proceeds to pursue inorganic acquisition initiatives focused towards the expansion of the operations.
  1. General Corporate Purpose: The Company plans to deploy the balance funds towards the general corporate goals, including but not restricted to strategic initiatives, partnerships, joint ventures, strategic entity/business acquisitions, branding, marketing, and new client referral fees meeting exigencies.

Creative Graphics Solutions Limited IPO Risks And Challenges

Creative Graphics Solutions’s potential risks include unsustainable investments from unidentified acquisitions, potential defaults by subsidiary companies, and dependence on a few suppliers for raw materials, which could negatively impact business operations and financial stability.

  1. The object of making unidentified acquisitions may lead to significant investments in the businesses that may not be sustainable in the long run, which may result in financial losses and negatively impact the company’s overall portfolio.
  1. The company has given Corporate Guarantees of INR 18.34 crores in respect to the loan taken by its subsidiary company (“Wahren India Private Limited”). The company cannot assure that there will be no default done by the subsidiary in the future.
  1. Almost 77% of the supplies are through the top 5 suppliers of the company. Any disruption in the supply of these raw materials or fluctuations in their prices could have a material adverse effect on the business operations and financial conditions.  

Creative Graphics Solutions Limited IPO – Industry & Market Potential

Flexo printing is becoming more and more attractive to brands all over the world. Flexographic printing is an economical alternative to digital printing for medium-to-long print runs, simple designs, and color combinations. It uses flexible plates to transfer the ink onto a substrate and can achieve quick line speeds. Hence, they can be used to print large orders in short lead times. 

The production speed of flexographic label printers is high, and the inks cost less than digital label printers. Flexographic printing also allows operators to alter labels without any additional expenses. Such benefits of flexographic printing have increased its usage in producing labels for applications such as packed food products, apparel, toiletries, health information labels, kitchenware, chemical labels, and others. 

The Future of Flexographic Printing to 2023 tracks and quantifies these trends, from a global market value of $35.76 billion in 2018 to $40.11 billion in 2023, an annual increase of 2.6%

Creative Graphics Solutions India Ltd IPO – Type of Offer

Creative Graphics Solutions Limited intends to launch an IPO valued at INR 54.40 crores, comprising a fresh issue of 64.00 lakh shares. The company aims to allocate the raised funds towards meeting working capital needs, loan repayment, capital expenditure, strategic growth initiatives, and general corporate purposes.

Creative Graphics Solutions India Ltd IPO Offer Size

The offer size of Creative Graphics Solutions Limited’s IPO is INR 54.40 crores, with a fresh issue of 64.00 lakh shares. The company plans to utilize the funds for various purposes including working capital requirements, loan repayment, capital expenditure, strategic growth initiatives, and general corporate purposes.

Creative Graphics Solutions Limited IPO Allotment Structure

Creative Graphics Solutions’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. A portion of the offer is reserved for market makers.

Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

Market Makers Reservations: A portion of the issue, i.e., 3,20,000 shares, are reserved for market makers.

How to apply for a Creative Graphics Solutions India IPO?

To apply for the Creative Graphics Solutions IPO through Alice Blue, you would typically follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

  1. Check for IPO Details: Once your account is active, you can check for the Creative Graphics Solutions IPO details in the IPO section of the Alice Blue platform.
  2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  3. Submit the Application: Confirm all your details and submit your application.

You can apply for the Creative Graphics Solutions IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Creative Graphics Solutions’s IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

  1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
  2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
  3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
  4. Select the Creative Graphics Solutions IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Creative Graphics Solutions IPO.
  5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.

Apart from Alice Blue, there are other ways to check the allotment status of the Creative Graphics Solutions IPO:

 ● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Creative Graphics Solutions IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

●  NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (BSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Creative Graphics Solutions  Ltd IPO Offer Registrar

The registrar for the Creative Graphics Solutions Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Bigshare Services Private Limited

S6-2, 6th Floor, Pinnacle Business Park, 

Next to Ahura Centre, 

Mahakali Caves Road, Andheri (East) Mumbai – 400093, 

E-mail Id: [email protected] 

Website: www.bigshareonline.com

Creative Graphics Solutions Limited IPO –  FAQs 

1. What is the allotment date of Creative Graphics Solutions Limited? 

The allotment date of the Creative Graphics Solutions Limited IPO is April 5, 2024.

2. What is the price band of the Creative Graphics Solutions IPO? 

The price band of the issue is INR 80 – 85 per share.

3. What is the size of the Creative Graphics Solutions IPO? 

The offer size of Creative Graphics Solutions Limited’s IPO is INR 54.40 crores, with a fresh issue of 64.00 lakh shares. The company intends to use the funds raised to meet the working capital requirements, repay borrowings, finance capital expenditure, support inorganic growth, and for general corporate purposes.

4. What is the listing date of the Creative Graphics Solutions IPO? 

The listing date of Creative Graphics Solutions’s IPO is April 9, 2024.

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