Creative Graphics Solutions India Limited IPO

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Creative Graphics Solutions India Limited (hereinafter referred to as “Creative Graphics”), has emerged as a prominent entity in the pre-press industry, specializing in the manufacturing of an extensive range of flexographic printing plates. The company’s origins can be traced back to January 24, 2014, when it was initially incorporated as “Tanushii Industries Private Limited”. Over the years, through strategic decisions and a vision for growth, the company has undergone significant transformations including a name change to “Creative Graphics Solutions India Private Limited” in 2019, followed by its conversion from a Private Limited Company to a Public Limited Company in 2023, marking a new phase in its journey as “Creative Graphics Solutions India Limited”.

Corporate Identity and Expansion:

The transition of Creative Graphics into a public entity not only signifies its growth trajectory but also its commitment to broader stakeholder engagement and transparency. With a Corporate Identification Number of U22219DL2014PLC263964, Creative Graphics stands as a testament to innovation and excellence in the pre-press domain. The company’s foundation was laid much earlier by its promoter, Mr. Deepanshu Goel, who initiated “Creative Graphics” as a proprietorship concern in 1998. This early venture laid the groundwork for what would become a formidable name in the industry, driven by the same business ethos and specialization in the manufacturing of printing blocks for various printing technologies.

Product and Service Portfolio:

Creative Graphics’ product portfolio encompasses a wide array of flexographic printing plates, including Digital Flexo Plates, Conventional Flexo Printing Plates, Letter Press Plates, Metal Back Plates, and Coating Plates. This diverse range caters to the nuanced and specific needs of the printing industry, ensuring high-quality output for various applications. The company’s expertise in this niche area has positioned it as a key player domestically and internationally, with a customer base spreading across India, African countries, Thailand, Qatar, Kuwait, and Nepal.

Strategic Growth and Subsidiaries:

In its pursuit of diversification and expansion, Creative Graphics has strategically broadened its operational spectrum through the establishment of two wholly-owned subsidiaries: Creative Graphics Premedia Private Limited and Wahren India Private Limited. This strategic expansion not only amplifies its service offerings but also consolidates its market position by venturing into complementary business areas, thus enhancing its competitive edge.

Conclusion:

Creative Graphics Solutions India Limited embodies a blend of traditional business values and modern entrepreneurial spirit. Its journey from a modest proprietorship to a dynamic public limited company mirrors its adaptability, innovative approach, and unwavering commitment to quality. As the company continues to evolve, its foundational principles, combined with strategic growth initiatives, position it well to navigate the challenges and opportunities of the ever-changing printing industry landscape.

Objects of the Creative Graphics Solutions India Limited IPO:

The company intends to utilize the Net Fresh Issue Proceeds for the following Objects: i. To meet the working capital requirements of the company; ii. Repayment/prepayment, in part or full, of certain borrowings; iii. To meet the capital expenditure of the company; iv. To meet out inorganic growth through unidentified acquisitions for company; and v. General Corporate Expenses.
DRHP of Creative Graphics Solutions India Limited IPO
RHP of Creative Graphics Solutions India Limited IPO

Creative Graphics Solutions India Limited IPO Details:

Open Date: Mar 28 2024
Close Date: Apr 04 2024
Total Shares: 6,400,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 54.40 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 80 - 85 Per Equity Share
Listing At: NSE Emerge
Listing Date: Apr 09 2024

Promoters And Management:

Mr. Deepanshu Goel, aged 49 years, the Managing Director of the Company, embarked on his entrepreneurial journey in 1998, focusing on the Flexo printing industry, with a strong commitment to delivering top-notch quality plates to leading clients, he has garnered global recognition and a multitude of awards for his contributions. Deepanshu Goel holds Degree in Advance Programme in Strategic Management for Business Excellence from Indian Institute of Management (IIM) Lucknow, and has dedicated to establishing a reputable position among entrepreneurial leaders by consistently offering the highest quality products in the market. Deepanshu's pursuit of excellence led him to enhance his skills through education, his leadership has propelled Creative Graphics from its modest beginnings to a pre-press trade shop in India. Mrs. Sarika Goel, aged 44 years, is an Executive Director of the Company, has transitioned into the world of business as Director at Creative Graphics and has given good time in understanding and developing various strategic decisions in the company. She has graduated from Delhi University in Bachelor of Commerce followed by Fashion Designing from JD Institute of Fashion Technology and Certificate of PC Application from NIIT. Sarika possesses a strong desire for continuous learning, striving to acquire new knowledge and insights every day. Her leadership has propelled Creative Graphics to nurture its culture and develop various practices for the betterment of the organization. The company boasts a robust value under the guidance of Sarika, where everyone is looking forward to learn and grow with new skillset. Mr. Gaurav Arora, aged 49 years, is a Non-Executive Director, Post graduate in Business Management from IMS, Ghaziabad. He worked as procurement manager in oil field in Jindal Group, Mumbai India later Joined ENI Saipem S.P.A. and served at Executive Posts during a span of 8 Years in different countries Italy, Nigeria, Congo, Gabon, South Africa, Malaysia, cote d’Ivoir, etc. He is currently associated associated with Book World, a firm dealing in corporate stationery and Computer Peripherals.

Financials of Creative Graphics Solutions India Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
6M-FY24
Revenue from Operations 4,758 6,831 9,014 4,807
Other Income 47 37 165 39
Total Revenue 4,804 6,868 9,178 4,846
Cost of raw materials consumed 2,880 3,895 5,118 2,376
Employees Benefit Expenses 875 1,279 1,422 755
Other Expenses 528 689 1,016 516
EBITDA 521 1,005 1,623 1,199
Depreciation & Amortisation 146 302 303 147
Finance Cost 48 78 121 109
EBIT 375 703 1,320 1,052
OPM (%) 10.85% 14.63% 17.68% 24.75%
PBT 327 624 1198 943
Tax 99 159 334 219
PAT 228 465 864 724
NPM (%) 4.75% 6.77% 9.42% 14.94%
No.of Shares 242.86 242.86 242.86 242.86
EPS 0.93 1.91 3.55 2.98

Comparison With Peers:

Note :- There are no listed companies in India that are engaged in the business line similar to this company.

Recommendation on Creative Graphics Solutions India Limited IPO:

Review and Recommendation of Creative Graphics Solutions India by team IZ is 4/10. 1. Creative Graphics Solutions India Limited, initially founded as Tanushii Industries Private Limited in 2014 and transitioned to a public limited company in 2023. Creative Graphics is renowned for its expertise in manufacturing a variety of flexographic printing plates, utilizing state-of-the-art technology and equipment. The company's commitment to quality and innovation is evident in its advanced manufacturing facilities spread across several Indian states, equipped with machinery from leading global suppliers like DuPont, Kodak, and Esko. With a significant team of over 400 personnel, Creative Graphics stands as a leader in its field, driven by a skilled team of technocrats. 2. Foundation and Expansion: The inception of Creative Graphics Solutions India Limited was preceded by a proprietorship concern, "Creative Graphics," established in 1998 by Mr. Deepanshu Goel. This early venture laid the groundwork for what would become a leading pre-press company, specializing in the manufacturing of flexographic printing plates. Over the years, the company has not only solidified its presence within India but also expanded its reach to international markets, including African countries, Thailand, Qatar, Kuwait, and Nepal. 3. Subsidiaries and Diversification: The company's growth strategy includes diversification through two wholly-owned subsidiaries: Creative Graphics Premedia Private Limited and Wahren India Private Limited. CG Premedia, established in December 2021, offers a range of premedia services to notable corporate clients, emphasizing design adaptation and print production. Wahren India, founded in May 2022, focuses on high-quality packaging solutions for the pharmaceutical industry, showcasing the group's expansion into specialized segments. 4. Flexographic Printing Plates: The company's product lineup includes Digital Flexo Plates, Conventional Flexo Printing Plates, Letter Press Plates, Metal Back Plates, and Coating Plates. These products are designed to cater to a broad spectrum of printing needs, offering solutions that combine high-quality output with operational efficiency. Creative Graphics' flexographic plates are distinguished by their ability to print smoother solids, utilize higher line screens, and reduce ink consumption and press downtime, among other advantages. 5. Innovation and Market Presence: Creative Graphics Solutions India Limited prides itself on being at the forefront of innovation in the printing industry. The company's unique selling points (USPs) and diverse product types position it as a key player in the flexographic printing sector, capable of delivering high-quality, efficient printing solutions to a wide range of customers, both domestically and internationally. 6. The Revenue has Increased from Rs.47 Crore in FY21 to Rs.90 Crore in FY23. 7. The EBITDA has Increased from 5 Crore in FY21 to 16 Crore in FY23. 8. The PAT has Increased from 2 Crore in FY21 to 8 Crore in FY23. 9. As per FY23, CFO/EBITDA is 0.99, As per FY24, EPS is 5.96, 10. Market Capitalization is 206 Crore & P/E is 14.25x based on FY24.

Lead Manager of Creative Graphics Solutions India Limited IPO:

  1. Corporate Capital Ventures Private Limited

Registrar of Creative Graphics Solutions India Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Creative Graphics Solutions India Limited 3F-305, Third Floor, SSG East Plaza, Plot No. 1&2, Mamram Complex, Mayur Vihar Phase-3, Near SFS Flats, Pocket C, Delhi - 110096 Phone: +91 74284 96617 Email: cs@creativegraphics.net.in Website: https://creativegraphics.net.in/home/

Discussion on Creative Graphics Solutions India Limited IPO:

1 Comment

    1. Looks a good company.
    2. Business is Unique. They do printing on Packaging. For example, we see branding, Nutritional value written on say Amul Milk. That is done by this company.
    3. Good Marquee Clients Like Tata Salt, HUL, Amul, Mother Dairy.
    4. The IPO is coming at P/E of 15x based on FY24 annualised numbers and Mcap of 205 cr

    Reply

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