Simca Advertising Ltd IPO
Miscellaneous
Price Band
₹174 – ₹183
Lot Size
600
Minimum Bid Quantity
1200
Minimum Investment
₹219600
Issue Size
₹58.04Cr
Opens
2026-05-08
Closes
2026-05-12
Listing
15-05-2026
Subscription Status
Qualified Institutional Buyers
81.83 x
Non-Institutional Investor
137.46 x
Retail Individual Investor
70.16 x
Total
75.85 x
IPO Details
Issue Type
EQUITY
Face Value
₹10
Tick Size
1
ISIN
INE1K4J01018
Pre-Apply Available
No
Daily Bidding Time
10:00:00 - 17:00:00
About the Company
Simca Advertising Limited is a provider of advertising services, with a focus on out-of-home (OOH) media. The company offers a range of advertising formats in public spaces, including hoardings, gantries, bus panels, bus shelters, kiosks, utilities, and vinyl signage, along with digital out-of-home (DOOH) displays and event-based campaigns. It provides end-to-end campaign execution services, including media planning, location selection, and advertisement display across public spaces. The company operates a portfolio of over 100 OOH media assets, including static and digital displays, primarily located across high-traffic areas in Mumbai. These assets are operated through lease or sub-lease arrangements from promoters and third parties. Simca Advertising primarily operates in Mumbai and Maharashtra, serving clients across sectors such as real estate, entertainment, fashion, insurance, advertising agencies, and government organisations. Use of proceeds: This is a fresh issue of shares. Therefore, the net proceeds from the fresh issue will go to the company. They will be utilised for the following purposes: Purchase and installation of light-emitting diode (LED) screens — Rs 12.72 crore Funding for strategic collaboration with Capital World Media Services Private Limited (CWM) for monetisation of 20 LED digital advertising screens — Rs 5 crore Incremental working capital requirements — Rs 23.5 crore General corporate purposes
Pros
- • The company claims to have built a presence in the out-of-home (OOH) advertising industry, supported by a portfolio of over 100 media assets across key locations in Mumbai. These assets are placed in high-traffic areas such as roads, transit hubs, and commercial zones, which may enable consistent audience reach and visibility.
- • The company claims to offer a mix of traditional OOH formats such as billboards and transit media, along with digital out-of-home (DOOH) solutions like LED displays and programmatic advertising. This range of formats allows it to cater to different campaign requirements and advertiser preferences.
- • The company claims to operate its media assets across strategically selected locations, including highways, metro hubs, airports, and commercial districts. Such placements may provide repeated exposure to commuters and pedestrians, potentially improving campaign visibility.
Cons
- • The company currently operates 29 hoarding sites (equivalent to 59 media slots) that are subleased from its promoter-owned proprietorship, Simca Advertising. These lease and sublease agreements cannot be transferred to the company due to contractual restrictions, limiting its ability to directly own or control these assets. Any adverse outcome in renewing these leases directly in the company’s name upon expiry could disrupt operations and impact its ability to maintain its media asset base.
- • A significant portion of the company’s current assets is tied up in trade receivables arising from advertising services provided to clients. Given the nature of the OOH business, there is often a delay between campaign execution and payment collection, which can extend beyond agreed credit periods. Extreme delays in receivable collections or defaults by key clients could lead to working capital mismatches, impact liquidity, and require reliance on short-term borrowings, thereby affecting the company’s financial position.
- • The top 10 customers contributed Rs 34.21 crore (43.97%), Rs 38.68 crore (51.61%), Rs 23.41 crore (47.48%), and Rs 7.72 crore (64.57%) to revenue from operations in the nine months ended December 31, 2025, and FY25, FY24, and FY23, respectively. The company does not typically have long-term or exclusive agreements with these clients, allowing them to discontinue or reduce business at short notice. Any loss of key clients or reduction in campaign spending could lead to revenue volatility and impact the company’s financials.
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