Creative Graphics Solutions India IPO Opens; Subscription Status, Bidding, GMP Key Details Here!

Creative Graphics Solutions India Limited, a prominent player in India's organised and integrated packaging ecosystem, has initiated its initial public offering (IPO) today, March 28, 2024. The IPO, valued at Rs 54.40 crores, consists entirely of a fresh issue of 64 lakh shares with a face value of Rs. 10 each. Priced between Rs 80 and Rs 85 per share, the issue will remain open for subscription until Thursday, April 4, 2024. Corporate Capital Ventures Private Limited serves as the sole bookrunner for the issue.

Anchor Book Review:

The company's Anchor Book, launched a day earlier, garnered significant attention with a complete subscription and raised Rs. 15.5 crore through the sale of 18.24 lakh equity shares priced at Rs. 85/- each. Distinguished investors such as BofA Securities Europe SA-ODI, QRG Investment and Holdings Limited, and others participated in the subscription, indicating strong investor confidence in the offering.

Shares Allocations

Creative Graphics intends to allocate 3.2 lakh equity shares for Market Maker, 9.12 lakh equity shares for non-institutional investors (NIIs), 30.4 lakh equity shares for qualified institutional buyers (QIBs), including the anchor investor portion, and 21.28 lakh equity shares for retail investors (RIIs). For the IPO, 1,600 shares will make up each lot.

The net proceeds from the IPO will be utilized to address various aspects of the company's financial requirements. These include meeting working capital needs, repaying or prepaying certain borrowings, funding capital expenditure, exploring inorganic growth through unidentified acquisitions, and managing general corporate expenses.

Financials:

In terms of financial performance, Creative Graphics Solutions India Limited exhibited robust results, recording revenue of Rs. 48.07 crore and a profit after tax (PAT) of Rs. 7.24 crore during the first half of the current fiscal year, ending September 30, 2023. In the preceding fiscal year 2022-23, the company achieved revenue of Rs. 90.14 crore and a PAT of Rs. 8.64 crore, demonstrating consistent growth and profitability.

Creative Graphics:

Established in 2014 by first-generation entrepreneur Deepanshu Goel, Creative Graphics specialises in manufacturing flexographic printing plates, catering to diverse markets in India, Thailand, Qatar, Kuwait, Nepal, and Africa. With operations across seven manufacturing facilities located strategically in various states, the company offers a comprehensive range of services, including digital flexo plates, conventional flexo printing plates, and letter press plates.

Furthermore, through its wholly-owned subsidiaries, Creative Graphics Premedia Private Limited (CG Premedia) and Wahren India Private Limited, the company extends its offerings to end-to-end premedia services and high-quality packaging solutions for the pharmaceutical industry, respectively.

Investors considering participation in the IPO are advised to carefully assess the associated risks. Details regarding investment risks can be found in the Red Herring Prospectus (RHP), including the section titled "Risk Factors." The RHP is available on the websites of the Book Running Lead Manager and the National Stock Exchange (NSE) Emerge.

Creative Graphics Solutions India Limited's IPO presents an opportunity for investors to partake in the growth story of a dynamic player in the packaging industry, backed by a robust financial track record and a diversified business model.