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Vertoz Advertising NSE SME IPO review (Apply)

Review By Dilip Davda on November 9, 2017

Vertoz Advertising Ltd. (VAL) is a programmatic advertising Company that offers engaging and innovative advertising and monetization solutions which replaces the traditional methods of media buying and selling of advertisement. VAL’s proprietary technology, advanced capabilities and programmatic platform is a highly scalable software platform that powers and optimizes the marketplace for the real-time trading of digital advertising inventory between advertisers and publishers. Company defines its platforms a “Ingenious Plex - The Complete Advertising and Monetization Suite”. Its Ingenious Plex incorporates proprietary algorithms, sophisticated big-data storage and processing systems, detailed real-time analytics capability and a geographically distributed infrastructure. Its intelligent data-driven low latency system has transformed the complicated process of buying and selling digital advertising into a seamless automated process that optimizes results for both advertisers and publishers. VAL’s advertisers can run advertisement on publisher webpage’s across multiple devices like desktop, mobile and tablets. This helps both advertisers and publishers to achieve their respective goals. VAL’s Ingenious Plex enables the advertisers to get in front of their desired audiences, engage with them and create brand recognition by tapping into a large pool of quality publishers.

To part finance its working capital requirement and general corpus fund needs, VAL is coming out with a maiden IPO of 1584000 equity shares of Rs. 10 each at a fixed price of Rs. 108 per share to mobilize Rs. 17.11 crore. Issue opens for subscription on 14.11.17 and will close on 16.11.17. Minimum application is to be made for 1200 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Guiness Corporate Advisors Pvt. Ltd. and Karvy Computershare Pvt. Ltd. is the registrar to the issue. Issue constitutes 26.47% of the post issue paid up capital of the company. Its entire equity is issued at par. Loan too is converted into equity shares at par in August 2017. It has also issued bonus shares in the ratio of 103 shares for every 1 share held in July 2017. Post issue, its current paid up equity capital of Rs. 4.40 crore will stand enhanced to Rs. 5.98 crore. Average cost of acquisition of shares by promoters ranges from Rs. 5.37 to Rs. 6.84 per share.

On performance front, VAL has posted (on a consolidated basis) turnover/net profits of Rs. 11.96 cr. / Rs. 0.36 cr. (FY16), Rs. 20.48 cr. / Rs. 3.06 cr. (FY17). For Q1 of the current fiscal, it has reported net profit of Rs. 1.01 crore on a turnover of Rs. 9.99 crore. For last two fiscals, VAL has reported an average EPS of Rs. 1081.21 and average RoNW of 71.83% on an equity base of Rs. 0.02 crore. Asking price is at a P/BV of 2.67 on the basis of post issue NAV. If we annualize latest earnings and attribute it on fully diluted equity post issue, then issue is priced at a P/E of around 16. As per offer documents, it has no listed peers to compare with. However, the only main board listed company in advertising sector Pressman Advertising is trading at a P/E of around 21 plus (as on 09.11.17).

On merchant banker’s front, this is the 20th mandate from its stable in past three fiscals. Out of last 10 listings, 3 IPOs opened at discount to offer price,2 at par and balance 5 giving around 3 to 20% premium to offer price on listing day.

Conclusion: Considering track record, issue pricing and the prospects for the advertising sector in digital India, investment may be considered for medium to long term. (Subscribe)

Conclusion / Investment Strategy

Considering track record, issue pricing and the prospects for the advertising sector in digital India, investment may be considered for medium to long term. (Subscribe)

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on November 9, 2017

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.

About Dilip Davda

Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

(Dilip Davda -SEBI registered Research Analyst-Mumbai,

Registration no. INH000003127 (Perpetual)

Email id: ).

Vertoz Advertising IPO FAQs

  1. 1. Why Vertoz Advertising IPO?

    The initial public offer (IPO) of Vertoz Advertising Limited offers an early investment opportunity in Vertoz Advertising Limited. A stock market investor can buy Vertoz Advertising IPO shares by applying in IPO before Vertoz Advertising Limited shares get listed at the stock exchanges. An investor could invest in Vertoz Advertising IPO for short term listing gain or a long term.

  2. 2. How is Vertoz Advertising IPO?

    Read the Vertoz Advertising IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Vertoz Advertising IPO what should investors do?

    Vertoz Advertising IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Vertoz Advertising IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.

  4. 4. Is Vertoz Advertising IPO good?

    Our recommendation for Vertoz Advertising IPO is to subscribe.

  5. 5. Is Vertoz Advertising IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Vertoz Advertising IPO.

  6. 6. When will Vertoz Advertising IPO allotment status?

    The Vertoz Advertising IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Vertoz Advertising IPO allotment status to check.

  7. 7. When will Vertoz Advertising IPO list?

    The Vertoz Advertising IPO will list on Friday, November 24, 2017, at NSE SME.