Veritaas Advertising Limited consists of a fresh issue of 7,44,000 shares worth INR 8.48 crores. The company aims to finance police booths, traffic signal displays, and general corporate needs.
Veritaas Advertising IPO – Important Dates
| Veritaas Advertising IPO Date | May 13, 2024 to May 15, 2024 |
| Veritaas Advertising IPO Listing Date | May 21, 2024 |
| Veritaas Advertising IPO Price | INR 109-114 per share |
| Veritaas Advertising IPO Lot Size | 1200 shares |
| Veritaas Advertising IPO Total Issue Size | INR 8.48 crores |
| Veritaas Advertising IPO Basis of Allotment | May 16, 2024 |
| Veritaas Advertising IPO Initiation of Refunds | May 17, 2024 |
| Veritaas Advertising IPO Credit of Shares to Demat | May 17, 2024 |
| Veritaas Advertising IPO Issue Type | Book Built Issue IPO |
| Veritaas Advertising IPO Listing At | NSE SME |
Veritaas Advertising Ltd IPO – Company Profile
Veritaas Advertising Limited offers comprehensive services and owns ad spaces in West Bengal, Guwahati, Shillong, Delhi, Mumbai, and Pune. Operating in police booths and hoardings ensures integrated marketing solutions, minimizing reliance on third parties.
They offer advertising services that monetize marketing collateral, differentiate from competitors, and prioritize creative storytelling for enhanced ROI. Their expertise spans offline platforms, delivering high-end advertising solutions, including Brand Strategy, Events, and Outdoor Media.
Police booth advertisements are a vital focus, drawing attention in diverse city areas. Veritaas invests in booths across West Bengal, Guwahati, and Shillong, fabricating and maintaining them for exclusive advertising rights and proposing expansion in new locations.
Veritaas Advertising Limited IPO Review
Veritaas Advertising Technologies’ financial analysis reveals a mixed performance. Revenue has steadily increased, reflecting business growth. Profitability improved significantly, but diluted EPS declined. RoNW rose, indicating enhanced returns for shareholders.
- Revenue Trend: The revenue increased from ₹336.98 lakhs in March 2022 to ₹774.84 lakhs in March 2023. The revenue for the current year’s February 2024 is INR 903.26 lakhs.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion.
- Profitability: The profit after tax (PAT) has significantly increased from ₹12.58 lakhs in March 2022 to ₹156.79 lakhs by February 2024. This improvement in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has declined from ₹13.98 in March 2022 to ₹7.54 by February 2024, reflecting lower earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has grown from 27.52% to 44.23%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has risen, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
Veritaas Advertising Ltd IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 10 February 2024 |
| Revenue (₹ in lakhs) | 336.98 | 774.84 | 903.26 |
| Equity (₹ in lakhs) | 45.71 | 89.60 | 354.39 |
| Expenses (₹ in lakhs) | 322.42 | 719.73 | 693.45 |
| Profit and Loss After Tax (₹ in lakhs) | 12.58 | 43.89 | 156.79 |
| Diluted EPS only (₹) | 13.98 | 48.77 | 7.54 |
| Return on Net Worth (%) | 27.52 | 48.99 | 44.23 |
| NAV per Equity Share (₹) | 50.78 | 99.55 | 17.05 |
| Total Assets (in lakhs) | 269.00 | 530.58 | 926.51 |
| Total Liabilities (in lakhs) | 223.29 | 440.98 | 572.12 |
| Current Ratio | 1.20 | 1.14 | 1.33 |
Veritaas Advertising IPO Peer Comparison
Veritaas Advertising Limited demonstrates modest financial performance, Crayons Advertising Limited shows robust figures, and Maagh Advertising & Marketing Services Limited exhibits moderate performance with growth potential.
| Company | Type of Financial | Revenue from Operations (₹ in lakhs) | Face Value (₹) | P/E Ratio | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Veritaas Advertising Limited | Standalone | 774.84 | 10 | NA | 2.27 | 2.27 | 48.99 | 99.55 |
| Crayons Advertising Limited | Standalone | 27,568.45 | 10 | 24.74 | 9.22 | 9.22 | 30.82 | 29.91 |
| Maagh Advertising & Marketing Services Limited | Consolidated | 2,003.47 | 10 | 11.41 | 1.56 | 1.56 | 3.67 | 42.59 |
Veritaas Advertising Limited IPO Objective
The main objective of Veritaas Advertising Limited is to fund capital expenditure for new police booths in West Bengal, Assam, Maharashtra, and Delhi, and pole kiosks for traffic signal point displays in Kolkata, Mumbai, and Pune.
- Funding the capital expenditures for setting up new Police Booths in West Bengal, Assam, Maharashtra, and Delhi: The total estimated cost of setting up 125 police booths in West Bengal, Assam, Maharashtra, and Delhi, amounting to INR 5.27 crores will be entirely funded through the proceeds of this Issue, based on board-approved quotations from third-party suppliers.
- Funding the capital expenditure on Pole Kiosks for setting up traffic signal point displays in Kolkata, Mumbai, and Pune: The company intends to utilize INR 6 crores to install ten pole kiosks in Kolkata, Mumbai, and Pune, fully funded by proceeds from this Issue. Board-approved quotations from third-party suppliers informed the cost estimate.
- General Corporate Purposes: The company will balance funds towards general corporate goals, including strategic initiatives, general procurement, brand building, and ongoing corporate exigencies, ensuring comprehensive support for operational and marketing activities.
Veritaas Advertising Ltd IPO Risks And Challenges
Veritaas Advertising Limited’s risks include strict timelines for police booth installation, dependence on third parties for ad spaces without formal agreements, and uncertainties in the renewal that impact financials and operations.
- Veritaas Advertising emphasizes police booth advertisements, a key business vertical. Approval for installation carries a strict 1-month timeline, failure of which could impact financials and operations, although no past instances occurred.
- They offer comprehensive advertising solutions, including brand strategy and outdoor media services. While owning most ad spaces, reliance on third parties for specific spaces poses risks, as formal agreements are lacking, potentially impacting business operations.
- They consider police booth advertising a main business vertical and aim to install booths in West Bengal, Assam, Maharashtra, and Delhi. Maintenance and renewal are crucial for sustained operations, with potential risks in non-renewal.
Veritaas Advertising Limited IPO – Industry & Market Potential
The 2024 Dentsu Global Ad Spend Forecasts predict a 4.6% increase in global advertising spend, driven by digital growth, especially in retail media and paid social channels. TV and connected TV also show promising growth.
India’s advertising industry is poised for significant growth, with digital advertising experiencing rapid expansion. Key players like Mudra, Ogilvy, and McCann Erickson lead the market, driving business opportunities amid a booming economy.
The Indian advertising market, valued at INR 743.0 Billion in 2022, is projected to grow to INR 1,412.5 Billion by 2028, with an 11.2% CAGR, propelled by increased adoption of advertising and digital solutions.
Veritaas Advertising Ltd IPO – Type of Offer
Veritaas Advertising Limited consists of a fresh issue of 7,44,000 shares worth INR 8.48 crores. The company aims to finance police booths, traffic signal displays, and general corporate needs.
Veritaas Advertising IPO Offer Size
The offer size of Veritaas Advertising Limited is INR 8.48 crores, consisting of a fresh issue of 7,44,000 shares. The company seeks funds to finance police booths, traffic signal displays, and general corporate needs.
Veritaas Advertising Ltd IPO Allotment Structure
Veritaas Advertising allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 35% for Non-Institutional Investors (NII), and 15% for Retail Individual Investors (RII) according to SEBI regulations. 37,200 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 49.75% 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): 15.11% 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 35.14% 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 Maker Reservation: A portion of shares, i.e., 37,200 shares are reserved for marker makers.
How to apply for Veritaas Advertising’s Ltd IPO?
To apply for the Veritaas Advertising 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.
- Check for IPO Details: Once your account is active, you can check for the Veritaas Advertising IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Veritaas Advertising 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 Veritaas Advertising’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- 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.
- 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.
- Select the Veritaas Advertising 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 Veritaas Advertising IPO.
- 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 Veritaas Advertising IPO:
● Registrar’s Website: Visit the website of Mas Services Limited, the registrar of the Veritaas Advertising 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 (NSE) Small Medium Enterprise (SME). 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.
Veritaas Advertising Ltd IPO Offer Registrar
The registrar for the Veritaas Advertising IPO is Mas Services Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
MAS Services Limited
T-34, 2nd Floor, Okhla Industrial Area,
Phase-II New Delhi- 110 020,
Delhi, India.
Telephone: +91 112 638 7281/83, 114 132 0335
E-mail: [email protected]
Veritaas Advertising IPO – FAQs
The allotment date of the Veritaas Advertising IPO is May 16, 2024.
The price band of the issue is INR 109-114 per share.
The offer size of Veritaas Advertising Limited is INR 8.48 crores, consisting of a fresh issue of 7,44,000 shares. The company seeks funds to finance police booths, traffic signal displays, and general corporate needs.
The listing date of Veritaas Advertising IPO is May 21, 2024.
