Creative Graphics Solutions India launches IPO

India based packaging and pre-press specialist Creative Graphics Solutions India has launched its initial public offering (IPO) which will open on Thursday, March 28, 2024. The anchor portion will be opened on Wednesday, March 27, 2024, and the issue will conclude on Thursday, April 04, 2024. 

The company intends to raise approximately INR 54.4 crore (USD 6.5m) (at upper band) from the offering and aims to be listed with NSE Emerge. The price band for the issue has been fixed at INR 80-85 (USD 0.96-1.02) per share, and the lot size will be 1,600 equity shares. 

Corporate Capital Ventures is the book running lead manager, and Bigshare Services is the registrar for the issue private limited is the registrar to the issue. Corporate Capital Ventures Private Limited 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. 

Creative Graphics is a product of the MSMEx SME IPO Cohort program, mentored by Amit Kumar, founder and CEO at MSMEx. 

The Noida-based company’s IPO will comprise a fresh issue of 64,00,000 equity shares with a face value of INR 10 (USD 0.12) through the book-building route. As many as 3,20,000 equity shares have been reserved for Market Maker, 9,12,000 equity shares allocated for NIIs, 30,40,000 equity shares for QIBs (including 18,24,000 equity shares as Anchor investor portion), and the Retail (RII) portion accounts for 21,28,000 equity shares. 

According to the RHP document, the company intends to utilize 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 specializes 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). 

Founded by Deepanshu Goel, a first-generation entrepreneur and incorporated in 2014, Creative Graphics has expanded its business through its wholly owned subsidiaries - Creative Graphics Premedia  (CG Premedia) and Wahren India. While CG Premedia offers end-to-end premedia services, from design adaptation to print production, Wahren India supplies high-quality packaging for the pharmaceutical industry. It produces alu-alu foil, blister foil, tropical alu-alu foil, CR foil, and pharmaceutical sachet. 

The company clocked revenue of INR 48.07 crore (USD 5.7m) and earned a profit (PAT) of INR 7.24 crore (USD 8,66,910)  during the first half of the current fiscal year, which ended September 30, 2023. It registered revenue of INR 90.14 crore (USD 10.7m) and a profit (PAT) of INR 8.64 crore (USD 1m) in FY2022-23.