Graphisads IPO subscribed 1.45 times on Day 3 so far; issue closes on Tuesday

The initial public offering of Graphisads has been oversubscribed by the investors during the third day of the bidding process which kicked-off on Thursday, November 30. The bidding for the issue will close on Tuesday, December 5, 2023.

Graphisads launched its initial public offering (IPO) on Thursday as the company is selling its shares at a fixed price of Rs 111 per share. Investors can bid for a minimum of 1200 shares and in multiples. A retail investor can apply for only one lot or 1,200 shares, worth Rs 1,33,200. Non-institutional investors (NIIs) need to bid for a minimum of two lots, or 2,400 shares.

The company received bids for 70,06,800 equity shares against 44,12,400 equity shares offered for bidding as of 12.20 pm on Monday, December 4, 2023. The subscription was overall subscribed 1.46 times as of the same time. The quota for NIIs was booked 1.03 times, while the retail portion was booked almost twice.

Graphisads will be raising a total of Rs 53.41 crore via IPO route, which entirely includes fresh share sale of 48,12,000 equity shares with a face value of Rs 10 each. Shares of the company will be listed on the SME platform of the National Stock Exchange (NSE). The company is not commanding any premium in the grey market as of Monday morning.

Incorporated in 1987, Graphisads is an integrated marketing, advertising, and communications agency providing 360-degree solutions to its wide array of clients. It provides advertising services on the work orders received by the government sector, private sector and other public sector entities.

"We are confident that Graphisads Limited will deliver consistent performance and provide an excellent investment opportunity for investors with a long-term horizon. Hence, we recommend 'subscribe' rating for long term investment," said ProfitMart Securities in its IPO note.

The company also offers high-end ecosystem and end-to-end ad-tech communication solutions platform for advertising media services consisting of brand Strategy, communication strategy, creative services, media planning, media buying and media release services which cover advertisement modes across all channels. It has been awarded with many rewards and recognitions.

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For the period ended on June 30, 2023, the company reported a net profit of Rs 2.06 crore with a revenue of Rs 26.02 crore. Its net profit came in at Rs 5.57 crore with a revenue of Rs 99.05 crore for the financial year 2022-23. Its return on equity (RoE) stood at 12.99 per cent and return on capital employed stood at 14.69 per cent.

 

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