Veritaas Advertising makes strong debut, shares list at 141% premium on NSE SME

Veritaas Advertising Ltd, a Kolkata based advertising agency, made a strong debut on the stock exchanges Tuesday, May 21, with the shares giving more than double returns to investors on listing.

Shares of Veritaas Advertising Ltd were listed at a premium of 141% premium to the issue price on the NSE SME platform. The stock opened at ₹275 apiece compared to the issue price of ₹114 per share.

After listing at a premium, the shares rallied as much as 5% to hit the upper circuit limit at ₹288.75 apiece. However, the stock pared early gains amid profit booking and soon dropped to an intraday low of ₹261.25 apiece.

Given that the lot size for the Veritaas Advertising IPO was 1,200 shares, successful bidders would have made a profit of at least ₹1,93,200 (161x1,200) after the listing of the shares.

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The ₹8.48-crore Veritaas Advertising IPO was open for subscription from May 13 to May 15. The public issue received an overwhelming demand from investors as the IPO was booked more than 622 times, with bids for over 33 crore shares against just 5.32 lakh shares on offer, according to data available on NSE.

In the non-institutional investor (NII) category, the issue was booked 630 times, while the portion reserved for retail investors was subscribed more than 989 times. The issue was booked 101 times in the QIB category.

The Veritaas Advertising IPO was a book-built issue comprising 7.44 lakh shares.

The money raised through the IPO will be used to fund the capital expenditure towards setting up of new Police Booths in West Bengal, Assam, Maharashtra and Delhi. A portion of the IPO proceeds will also be used for funding the capital expenditure to set up Pole Kiosks for setting up of traffic signal point displays in Kolkata, Mumbai and Pune.

The advertising agency was incorporated on July 31, 2018. The agency is engaged in providing 360-degree services across various platforms. The company offers services such as brand strategy, events, and outdoor (OOH) media services, which cover various advertisement modes like police booth hoardings, newspaper insertions and brochures.

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