Simca Advertising IPO Sees Overwhelming Response on Second Day, Closes for Subscription on May 12

Simca Advertising IPO Receives Strong Response from Investors

Simca Advertising, a leading provider of out-of-home (OOH) advertising solutions, has seen a robust response from investors to its maiden public issue. On May 11, the second day of bidding, the IPO received subscriptions of 3.96 times.

The initial public offering (IPO) will remain open for subscription until May 12. The company aims to raise Rs 58.04 crore through the issue of 31.71 lakh equity shares, consisting entirely of fresh shares. The price band for the offer has been set between Rs 174 and Rs 183 per share.

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The subscription received from non-institutional investors has led the charge, with bids of 7.27 times the allotted quota. Retail investors and qualified institutional buyers have subscribed 4.1 times and 2.97 times, respectively.

Prior to the public issue, Simca Advertising had raised Rs 8.03 crore by issuing 4.39 lakh shares to four anchor investors - Rajasthan Global Securities, LRSD Securities, Bridge India Fund, and Vikasa India EIF I Fund - at the upper price band on May 7.

The company intends to utilize the proceeds from the IPO for various purposes. Specifically, Rs 12.7 crore will be used to purchase and install LED screens, while Rs 5 crore will be allocated for funding strategic collaboration with Capital World Media Services (CWM) for monetization of 20 LED digital advertising screens. Additionally, Rs 23.5 crore will be utilized for incremental working capital requirements, and the remaining amount will be used for general corporate purposes.

Socradamus Capital is acting as the sole book running lead manager for the Simca Advertising IPO.

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