Adcounty Media India Limited, a BrandTech company, is launching its Initial Public Offering (IPO) to raise capital for its growth initiatives. Here’s what you need to know about this upcoming SME IPO.
IPO Details
- IPO Opening Date: June 27, 2025
- IPO Closing Date: July 01, 2025
- Total IPO Size: Rs. 50.69 crore
- Fresh Issue: 5,963,200 equity shares
- Offer For Sale (OFS): No OFS component
- Price Band: Rs. 80 – Rs. 85 per equity share
- Minimum Lot Size: 1600 shares
- Allocation for Investor Categories:
- Qualified Institutional Buyers (QIBs): Not more than 50% of the Net Issue (approx. 2,811,200 Equity Shares)
- Anchor Investor Portion: Up to 60% of the QIB portion (approx. 1,686,400 Equity Shares)
- Domestic Mutual Funds: Up to 5% of the Net QIB Portion (approx. 56,000 Equity Shares)
- Non-Institutional Investors (NIIs): Not less than 15% of the Net Issue (approx. 842,400 Equity Shares)
- Retail Individual Investors (RIIs): Not less than 35% of the Net Issue (approx. 1,972,000 Equity Shares)
- Market Maker Reservation Portion: 336,000 Equity Shares
- Qualified Institutional Buyers (QIBs): Not more than 50% of the Net Issue (approx. 2,811,200 Equity Shares)
- Lead Manager: Narnolia Financial Services Ltd.
- Registrar: Skyline Financial Services Pvt. Ltd.
- Market Maker: Prabhat Financial Services Ltd.
About the Company
Adcounty Media India Limited (AMIL) was initially incorporated as a private limited company on May 03, 2017, and later converted into a public limited company on May 28, 2024. It operates as a BrandTech and AdTech company, specializing in providing end-to-end digital marketing and advertising solutions. The company focuses on performance marketing with outcome-based pricing models like Cost Per Install (CPI), Cost Per Lead (CPL), Cost Per Sale (CPS), and Cost Per Acquisition (CPA). It also leverages in-house tools such as BidCounty and platforms like VOOHOO Live for programmatic ad campaigns and digital marketing services including SEO, PPC, and social media marketing.
The company operates on a B2B model and serves a diverse range of clients across industries such as Fintech, BFSI, E-commerce, iGaming, and FMCG. They work with multiple brands to help them acquire a premium user base and achieve marketing objectives. They also operate multiple websites across various verticals and offer mobile apps.
Adcounty Media India provides mobile and web agency services from its offices in India. Their registered office is in Jaipur, Rajasthan, and they have a corporate office in Gurugram, Haryana. As of the Red Herring Prospectus, the company has 45 employees.
The promoters of the company are Mr. Chandan Garg, Mr. Aditya Jangid, Mr. Abbhinav Rajendra Jain, Mr. Delphin Varghese, Ms. Vartika Dangayach, and the corporate promoter M/s Innovana Thinklabs Limited.
Financials
Here’s a summary of Adcounty Media India Limited’s financial performance:
| Particulars (Rs. in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 |
|---|---|---|---|
| Revenues | 6,889.51 | 4,265.95 | 5,356.52 |
| EBITDA | 1,825.16 | 1,080.15 | 1,040.43 |
| EBITDA Margin | 26.49% | 25.32% | 19.42% |
| Net Profit (PAT) | 1,375.01 | 828.23 | 763.50 |
| Net Profit Margin | 19.96% | 19.41% | 14.25% |
Post IPO Market Cap: Rs. 191.26 crore
Market Cap/Sales (FY25 Total Income): 2.75 times
Observation on Results: The company has demonstrated growth in its top and bottom lines for the reported periods. While there was a setback in top line revenue for FY24, the net profit still showed an increase.
Salient Points
- Use of Funds: The company plans to utilize Rs. 14.00 crore for capital expenditure, Rs. 25.00 crore for working capital requirements, and the remaining funds for general corporate purposes and unidentified acquisitions.
- Business Scenario: Adcounty Media focuses on providing end-to-end brand solutions, leveraging technology to offer customized advertising across various industries. They operate under a B2B model, emphasizing performance-based marketing.
- Major Products/Services: Key services include Programmatic Advertising (with their BidCounty tool), Search Engine Optimisation (SEO), social media marketing, and various campaign types such as Pay Per Click (PPC), Cost Per Acquisition (CPA), Cost Per Sale (CPS), Cost Per Lead (CPL), and Cost Per Install (CPI). They also offer mobile and web agency services, operate multiple websites, and provide mobile applications.
- Expansion Planned: The company intends to expand by developing eight new websites and three new mobile applications in-house. Additionally, they plan to outsource the development of a Mobile Intelligence Tool and an Analytics Tool (Adcounty Search Tool).
- Major Clients: Notable clients include PB Fintech Limited (Policy Bazaar, Paisa Bazaar), Bank Sathi, and MUV. They also collaborate with leading media agencies such as GroupM, Publicis Media India, PartnerBoost, and GoMobile.
- Working Capital & Receivables Trend: The business is characterized by significant working capital intensity, with a major portion tied up in trade receivables. The company’s working capital has increased from Rs. 493.28 lakhs in FY23 to Rs. 3,339.53 lakhs in FY25. Trade receivables have shown an increasing trend, from Rs. 1,370.38 lakhs in FY23 to Rs. 3,043.14 lakhs in FY25.
- Profit & Margin CAGR/Trend:
- Net Profit (PAT) has seen a Compound Annual Growth Rate (CAGR) of approximately 34.79% from FY23 to FY25.
- Both PAT Margin and EBITDA Margin have shown an increasing trend over the last three fiscal years, from 14.25% to 19.96% for PAT Margin and 19.42% to 26.49% for EBITDA Margin.
Peers
| Company | Year | Revenue (Rs cr.) | Net Profit (Rs. Cr.) | NPM % | P/E | Mrkt cap/Sales | D/E |
|---|---|---|---|---|---|---|---|
| Adcounty Media India | FY25 | 68.89 | 13.75 | 19.9% | 13.9 | 2.8 | 0 |
| Affle (India) | FY24 | 2266 | 381.9 | 16.9% | 74 | 12.5 | 0.03 |
| DAPS Advertising | FY24 | 19.07 | 1.19 | 6.2% | 11.4 | 0.7 | 0.01 |
Management Commentary
The company aims to enhance its corporate image and brand name through this listing. They plan to redefine industry standards by creating compelling brand narratives driven by technology and storytelling. Their vision is to provide brands with actionable insights to craft high-converting campaigns and build authentic relationships with their audience to bolster growth and visibility. They have expressed intent to deploy IPO funds strategically to meet capital expenditure and working capital needs, anticipating an increase in revenue and profits post-IPO.
Lead Manager
Narnolia Financial Services Ltd., the sole lead manager for this IPO, has handled 18 mandates in the last three fiscal years. As per RHP Out of their last 10 listings, 3 opened at a discount, while the remaining 7 opened with a premium ranging from 2.60% to 110.36% on the listing date. The last 5 issues as per RHP include
- Sat Kartar Shopping Limited, +89.90
- Usha Financial Services Limited, -2.38%
- Pranik Logistics Limited, +2.60%
- Divyadhan Recycling Industries Limited, +31.25%
- Share Samadhan Limited, -1.28%
Market Maker
Prabhat Financial Services Ltd. is the market maker for Adcounty Media India Limited IPO.
Opinion
Based on above I intend to apply to the IPO. Business prospects are good for the sector and performance has been good.
Post IPO equity capital: Rs. 22.50 crore
P/E for FY24: 23.10 times
P/E for FY25: 13.91 times
Post IPO Market Cap: Rs. 191.26 crore [69]
Market Cap/Sales (FY25): 2.78 times [69]
- SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
- This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.