Creative Graphics Solutions India IPO: Review, Valuation & GMP

Creative Graphics Solutions India IPO  - Complete Overview

Established in 2014, Creative Graphics Solutions India Limited operates as a pre-press company, specializing in the production of flexographic printing plates, including Digital Flexo Plates, Conventional Flexo Printing Plates, Letter Press Plates, Metal Back Plates, and Coating Plates.

Originally incorporated as "Tanushii Industries Private Limited," the company has since expanded its reach both domestically and internationally.

Serving customers across India and in various countries such as African nations, Thailand, Qatar, Kuwait, and Nepal.

The company has extended its operations through two wholly-owned subsidiaries:

1. Creative Graphics Premedia Private Limited: This subsidiary provides premedia services encompassing design adaptation to print production. Its clientele includes renowned corporate entities such as ITC, TATA Consumers, MARS, Cavin Kare, Haldiram, Dabur India, KRBL, Himalaya, Hamdard Laboratories, among others.

2. Wahren India Private Limited: Specializing in the production of Alu-Alu Foil, Blister Foil, Tropical Alu-Alu Foil, CR Foil, and Pharmaceutical Sachet, Wahren India contributes significantly to the company's diverse product offerings.

Since its inception, the company has established seven manufacturing units across different states, including Noida (Uttar Pradesh), Vasai (Mumbai), Chennai, Baddi (Himachal Pradesh), Hyderabad, Ahmedabad, and Pune as of 2022. This widespread presence enhances the company's production capabilities and geographic coverage.

With a workforce of more than 400 employees, Creative Graphics Solutions India Limited demonstrates its commitment to maintaining a skilled and dedicated team to support its operations and growth initiatives.

Creative Graphics Solutions India IPO Overview

Creative Graphics Solutions India Limited IPO date is slated to be open for subscription from March 28, 2024, to April 4, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Creative Graphics Solutions India Limited IPO price is fixed in the range of Rs.80 to Rs.85 per share. 

The total issue size of this IPO amounts to Rs.54.40 Cr. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non-instituional investors.

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Creative Graphics Solutions India Limited has seen growth in total assets, net worth, and total revenue. The profit after tax and total borrowing have also increased.

Amount in Lakhs

Period	30 Sep 2023	31 Mar 2023	31 Mar 2022
Total Assets	10,031.29	6,600.07	4,497.40
Total Revenue	4,845.69	9,178.34	6,868.33
PAT	724.07	864.15	465.05
Net worth	2,550.90	1,872.75	1,008.60
Reserve & Surplus	2,400.91	1,797.75	933.60
Total Borrowings	4,499.90	2,290.52	950.57

 

Revenue from our certain geographical regions

(Amount in thousands)

Particular	FY 2022-23	FY 2021-22	FY 2020-21
Uttar Pradesh	1,36,873	69,782	51,806
Haryana	1,30,518	95,366	66,582
Gujarat	1,29,989	90,373	-
Himachal Pradesh	90,526	83,366	63,147
Telangana	71,493	61,249	59,172
Maharashtra	-	-	37,864
Total	5,59,399	400136	2,78,570

 

 

 

The Objective of the Issue

The Company plans to allocate the Net Fresh Issue Proceeds for the following purposes:

1) Meeting the working capital requirements of Creative Graphics.

2) Repayment or prepayment, either partially or in full, of certain existing borrowings.

3) Funding capital expenditure needs within Creative Graphics.

4) Facilitating inorganic growth through potential acquisitions, yet to be identified.

5) Covering general corporate expenses.

 

Peers of Creative Graphics Solutions India Limited IPO

According to the DRHP, none of the listed companies in India exclusively offer the flexographic plates provided by the company. Hence, a comparison is not possible.

Evaluation

The IPO is priced within the range of Rs.80 to Rs.85 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 115 from the last year, the resulting P/E ratio is 0.74x.

• Taking into account the weighted EPS of Rs 83,16 for the last three years, the P/E ratio amounts to 1.02x.

Comparative Analysis with Listed Peers

• There are no listed peers of the company.

 

 

IPO's Strengths 

• Experienced promoters and management team with strong industry expertise and a successful track record.

• Long-term supply agreements in place.

• Futuristic infrastructure and modern-day technology implemented.

• Strong and long-standing customer relationships established.

• Affiliations with various organizations.

• An in-house artwork team is available.

IPO weaknesses 

• The company requires certain approvals, licenses, registrations, and permits to operate its business.

• The lenders of the company have charged over its fixed assets and book debts in respect of finance availed by it.

• The company does not have a direct tie-up or agreement with big corporate houses for its products; it is dependent on intermediaries for corporate client acquisition.

• Making flexographic plates can create waste that harms the environment. This waste might lead to fines and punishments.

IPO GMP Today 

The Latest GMP of Creative Graphics Solutions India Limited is Rs.66.

 

Creative Graphics Solutions India Limited IPO timetable (Tentative)

Creative Graphics Solutions India Limited IPO is scheduled from March 28 to April 4, 2024, with allotment on April 5, refund initiation on April 8, and listing on April 9, 2024.

Events	Date
IPO Opening Date	March 28, 2024
IPO Closing Date	April 4, 2024
IPO Allotment Date	April 5, 2024
Refund initiation	April 8, 2024
IPO Listing Date	April 9, 2024

Creative Graphics Solutions India Limited IPO Details 

Creative Graphics Solutions India Limited IPO, with a face value of Rs.10 per share, opens on March 28 and closes on April 4, 2024, offering 6,400,000 shares at Rs.80 to Rs. 85 per share, with a lot size of 1600 shares, aiming to raise Rs.54.40 Cr, and will be listed on NSE SME.

IPO opening & closing date	March 28, 2024 to April 4, 2024
Face value	₹10 per share
Issue Price	₹80 to ₹85 per share
Lot Size	1600 Shares
Price of 1 lot	₹136,000
Issue Size	6,400,000 shares (aggregating up to ₹54.40 Cr)
Fresh issue	6,400,000 shares (aggregating up to ₹54.40 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

 

 

Creative Graphics Solutions India Limited IPO Lot Details 

For Creative Graphics Solutions India Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1600 shares) at Rs.136,000 while for HNI investors, the minimum investment is 2 lots (3200 shares) at Rs.272,000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

 

Creative Graphics Solutions India Limited IPO Reservation

Institutional share Portion	50%
Non-institutional share Portion	15%
Retail share Portion	35%

 

Promoters and Management of Creative Graphics Solutions India

• Mr. Deepanshu Goel 

• Mrs. Sarika Goel

Pre-issue Promoter shareholding	92.10%
Post-issue Promoter shareholding	67.83%

 

Creative Graphics Solutions India Limited IPO Lead Managers

• Corporate Capitalventures Pvt Ltd

Dividend Policy

The company has paid a dividend of Rs. 1 per share in the fiscal year 2022-2023.

 

 

 

Conclusion

Creative Graphics Solutions India Limited has a solid client base and a good track record of financial performance. The company operates with modern-day technology, making it an attractive investment opportunity for potential investors. Before making any decisions, investors should thoroughly assess all relevant factors and consider applying for this IPO.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

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