Veritaas Advertising Limited IPO

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They are a comprehensive advertising agency offering a broad spectrum of 360-degree services across various platforms. They own advertisement spaces in West Bengal, Guwahati, and Shillong, establishing ourselves as one of the few media-owning marketing and advertisement agencies. Their presence extends to other major cities like Delhi, Mumbai, and Pune. Their primary advertising mediums include police booths and outdoor hoardings, allowing them to reduce dependence on third parties and offer truly integrated services.

Core Services

i. Platforms: They provide marketing and advertising services across diverse platforms, including police booth hoardings, outdoor hoardings, newspaper insertions, brochures, and other media.
ii. Client-Centric Advertising: Their advertising solutions enable clients to monetize marketing collateral, build creative brand stories, and enhance ROI through compelling messaging tailored to their audience.

Unique Selling Proposition

i. Media Ownership: Their ownership of advertisement spaces reduces their dependence on intermediaries, enabling seamless integrated service delivery.
ii. Creativity: Creativity is at the core of their services, and all campaigns are developed with a focus on delivering compelling, attention-grabbing communications.
iii. Exclusive Rights: They fabricate and maintain police booths at their expense, granting them exclusive rights to use them for advertisements. With renewals every three years, these booths have consistently been a strong business vertical.

Geographic Presence

They operate in key Indian states such as West Bengal, Assam, Delhi, Jharkhand, Mumbai, and Pune. Offices in Kolkata, Guwahati, and Delhi ensure effective project execution, with plans to establish a presence in Mumbai.

Client Portfolio

Their diverse client base includes businesses from various sectors such as automotive, construction, real estate, jewelry, electronics, FMCG, technology, education, medical, and lifestyle. This diversity allows them to customize services for each client’s specific needs, ensuring a comprehensive marketing approach.

Overall, their integrated advertising solutions and expertise across various mediums make them a trusted partner in delivering effective campaigns with substantial ROI for their clients.

Objects of the Veritaas Advertising Limited IPO:

The Company proposes to utilize the Net Proceeds from the Issue towards the following objects: i. Funding the capital expenditure towards setting up of new Police Booths in West Bengal, Assam, Maharashtra and Delhi; ii. Funding the capital expenditure in Pole Kiosks for setting up of traffic signal point displays in Kolkata, Mumbai and Pune; iii. General Corporate Purposes
DRHP of Veritaas Advertising Limited IPO
RHP of Veritaas Advertising Limited IPO

Veritaas Advertising Limited IPO Details:

Open Date: May 13 2024
Close Date: May 15 2024
Total Shares: 744,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 8.48 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 109 - 114 Per Equity Share
Listing At: NSE Emerge
Listing Date: May 20 2024

Promoters And Management:

Debojyoti Banerjee, 42, is the Promoter, Chairman, and Managing Director of the Company. He completed his Higher Secondary education at Don Bosco School, Howrah, and pursued a bachelor's degree in business administration but did not finish his final exams. With over two decades of advertising and outdoor media experience, he has held roles such as system administrator, marketing executive, vice president, and business development manager at various firms. As the driving force behind the Company, he oversees marketing, finance, project execution, and overall management, contributing significantly to its growth and development. Sangita Debnath, aged 35 years, is the Promoter and Whole-time Director of the Company. She holds a bachelor’s degree in science from University of Kalyani. In the past she was associated with ABP Anando division of Media Content & Communications Services (India) Private Limited, in the capacity of an assistant producer (editorial); with North East Multimedia Private Limited, in the capacity of production executive – output. She has more than one year of experience in the field of media and broadcasting. Presently, she oversees digital media and operational management of the Company. Mina Debnath, aged 67 years, is the Promoter and Non-executive director of the Company. She does not hold any educational qualification. She has been associated with the Company since incorporation and is responsible for managing the human resources of the Company. She has more than five years of experience in human resource management.

Financials of Veritaas Advertising Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
FY24 ( Till Feb 10th, 2024 )
Revenue from Operations 230 337 775 903
Other Income 4 2 12 1
Total Revenue 234 339 787 904
Cost of Material Consumed 0 0 14 14
Purchases of services 80 110 343 349
Employees Benefit Expenses 69 113 195 168
Other Expenses 59 93 130 115
EBITDA 27 24 105 259
Depreciation & Amortisation 0.2 5 24 28
Finance Cost 0 2 14 20
EBIT 26 19 81 231
OPM (%) 11.34% 7.00% 13.34% 28.62%
PBT 26 17 67 211
Tax 7 4 23 54
PAT 20 13 44 157
NPM (%) 8.42% 3.71% 5.58% 17.34%
No.of Shares 28.23 28.23 28.23 28.23
EPS 0.69 0.44 1.55 5.55

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Veritaas Advertising Limited 8 0.4 1.55 73.3 114 32
Crayons Advertising Limited 276 17 N/A 21.9 136 331
Maagh Advertising & Marketing Services Limited 20 0.6 0.12 219.0 14.6 328
* All the data is as per FY23.

Recommendation on Veritaas Advertising Limited IPO:

1. This agency is a fully integrated advertising firm offering comprehensive 360-degree services across multiple media platforms. It uniquely owns advertisement spaces in West Bengal, Guwahati, and Shillong, distinguishing itself as one of the few media-owning marketing and advertisement agencies in these regions. 2. Furthermore, the agency operates in major Indian cities such as Delhi, Mumbai, and Pune. Its operations include unique advertising placements in police booths and outdoor hoardings, reducing reliance on third-party providers and enhancing its ability to deliver integrated services. 3. Innovative Advertising Solutions The agency provides end-to-end advertising solutions, covering an extensive range of media services that include brand strategy, events, and outdoor (OOH) media services. It utilizes various advertising modes such as police booth hoardings, newspaper insertions, brochures, and the display of outdoor hoardings. 4. Specialized Advertisement Channels Police booth advertisements, in particular, are a significant aspect of the agency's strategy. These installations are strategically placed in high-traffic areas across cities, offering high visibility and audience engagement. The agency fabricates and maintains these booths at its own cost, recognizing these expenditures as intangible assets. 5. Market Presence and Client Base With operations and successful project executions across multiple states including West Bengal, Meghalaya, Assam, Delhi, Jharkhand, Mumbai, and Pune, the agency boasts a significant market presence. Its client portfolio spans various industries such as electronics, automobiles, FMCG, lifestyle, education, real estate, insurance, pharmaceuticals, and information technology, illustrating its ability to tailor strategies across diverse sectors. 6. The Revenue has Increased from Rs.2 Crores in FY21 to Rs.7 Crores in FY23. 7. The EBITDA has Increased from 27 Lakhs in FY21 to 1 Crore in FY23. 8. The PAT has Increased from 20 Lakhs in FY21 to 44 Lakhs in FY23. 9. As per FY23, CFO/EBITDA is 0.93, As per FY24, EPS is 6.66, 10. Market Capitalization is 32 Crore & P/E is 17.10x based on FY24

Lead Manager of Veritaas Advertising Limited IPO:

  1. Horizon Financial Pvt Ltd

Registrar of Veritaas Advertising Limited IPO:

  1. MAS Services limted

Company Address:

Veritaas Advertising Limited 38/2A, Gariahat South Road, Dhakuria Rash Behari Avenue Kolkata - 700 029, Phone: +91 33 4044 6683 Email: info@veritaasadvertising.com Website: http://www.veritaasadvertising.com/

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