Noida-headquartered Creative Graphics Solutions India, an integrated packaging ecosystem player, on March 22 announced that its initial public offering (IPO) will open for subscription on March 28 (Thursday). The anchor portion will be opened on Wednesday, March 27, and the issue will conclude on April 4. The company aims to raise around Rs 54.4 crore (at the upper price band) from the offering. The price band for the issue has been fixed at Rs 80-85 per share, and the lot size will be 1,600 equity shares. Shares of the company are proposed to be listed on NSE Emerge platform.
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Corporate Capital Ventures is the book running lead manager, and Bigshare Services Private Limited is the registrar for the issue. Of late, Corporate Capital Ventures Private Limited recently completed a string of successful SME IPOs in recent months, including Alpex Solar, Esconet Technologies, Rockingdeals, Accent Microcell, Oriana Power, Droneacharya and Crayons Advertising, among others.
The IPO will comprise a fresh issue of 64,00,000 equity shares with a face value of Rs 10 through the book-building route. As many as 3.2 lakh equity shares have been reserved for market maker, 9.12 lakh equity shares allocated for non institutional investors (NIIs), 30.4 lakh equity shares for qualified institutional buyers (QIBs) (including 18.24 lakh equity shares as anchor investor portion), and the retail (RII) portion accounts for 21.28 lakh equity shares.
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According to the RHP document, the company intends to utilise net proceeds from the IPO to meet the working capital requirements of the company, repay/prepay, in part or full of certain of the company’s borrowings, meet the capital expenditure of the company, fund inorganic growth through unidentified acquisition for the company, and general corporate expenses.
Creative Graphics specialises in manufacturing flexographic printing plates, including digital flexo Plates, conventional flexo printing plates, letter press plates, metal back plates, and coating plates. The company serves its customer base in India, Thailand, Qatar, Kuwait, Nepal, and Africa. It operates seven manufacturing facilities in different states: Noida (Uttar Pradesh), Vasai, Pune (Maharashtra), Chennai (Tamil Nadu), Baddi (Himachal Pradesh), Hyderabad (Telangana), and Ahmedabad (Gujarat).
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Deepanshu Goel, Founder, Creative Graphics Solutions said, “Flexographic market is growing at a CAGR of 20% in India. However, in the developed countries it is growing at a CAGR of 8-10%. At present, market size of flexographic industry is Rs 1,000 crore in India and they hold 9-10% of the market share.”
The first-generation entrepreneur further said that the company has expanded its business through its wholly owned subsidiaries – Creative Graphics Premedia Private Limited (CG Premedia) and Wahren India Private Limited. While CG Premedia offers end-to-end premedia services, from design adaptation to print production, Wahren India supplies high-quality packaging solutions for the pharmaceutical industry. It produces Alu-Alu Foil, Blister Foil, Tropical Alu-Alu Foil, CR Foil, and Pharmaceutical Sachet.
The company reported revenue of Rs 48.07 crore and earned a profit of Rs 7.24 crore during the first half of the current fiscal year, which ended September 30, 2023. It registered revenue of Rs 90.14 crore and a profit (PAT) of Rs 8.64 crore in FY2022-23.
