Simca Advertising Plans IPO of 31.72 Lakh Shares to Fund Digital LED Expansion

Mumbai, July 1, 2025 – Simca Advertising Limited has filed its Draft Red Herring Prospectus (DRHP) with NSE Emerge for a proposed Initial Public Offering (IPO) comprising a fresh issue of up to 31,72,000 equity shares. The issue is structured as a 100% book-built offer, with no Offer for Sale (OFS), and the total proceeds from the IPO will accrue to the company. The issue price, price band, and total issue size in rupee terms are yet to be finalised.

Issue Structure and Listing Details

The equity shares have a face value of ₹10 each and are proposed to be listed on the SME platform of the National Stock Exchange (NSE Emerge). Socradamus Capital Private Limited is the Book Running Lead Manager (BRLM), and MUFG Intime India Private Limited is the Registrar to the Issue.

IPO Details	Figures
Type of Issue	100% Fresh Issue
Total Shares Offered	Up to 31,72,000 equity shares
Offer for Sale (OFS)	Nil
Face Value	₹10 per share
Listing Platform	NSE Emerge
Promoters	Fahim Batliwala and Ashma Fahim Batliwala

Utilization of IPO Proceeds

As per the DRHP, Simca Advertising proposes to utilize the Net Proceeds for the following purposes:

Purpose	Amount (₹ in Lakhs)
Purchase and installation of LED screens	1,271.88
Strategic collaboration with Capital World Media Services Pvt Ltd (CWM)	500.00
Funding incremental working capital requirements	2,350.00
General corporate purposes	[●]
Total Net Proceeds	₹[●]

The company plans to deploy ₹1,200 lakh in FY2026 and ₹1,150 lakh in FY2027 towards working capital, reflecting its scale-up in operations and direct-to-client sales model.

Strategic LED Investments

Simca will install 7 new LED screens at premium high-footfall locations in Mumbai, including Infiniti Mall (Malad), Juhu, Powai, Andheri, and Vile Parle. The investment is expected to improve monetization via dynamic content rotation, programmatic scheduling, and enhanced visibility.

In addition, Simca has entered into a profit-sharing agreement with Capital World Media Services Pvt Ltd to jointly monetize 20 digital LED ad screens at MSRTC Mega Bus Queue Shelters along Mumbai’s Western Express Highway. Simca has already paid ₹250 lakh and will use ₹500 lakh from the IPO proceeds to complete the ₹750 lakh commitment for a 50% revenue share over 10 years.

Financial Highlights (Standalone)

• Revenue from operations grew to ₹7,494.46 lakhs in FY25 from ₹4,930.50 lakhs in FY24.
• Net profit rose 73% YoY to ₹997.52 lakhs from ₹577.58 lakhs.
• EBITDA increased to ₹1,363.27 lakhs, up from ₹772.28 lakhs in the previous year.
• Net worth more than doubled to ₹1,736.71 lakhs in FY25.
• Earnings Per Share (EPS) improved to ₹11.34 from ₹6.56 in FY24.
• Cash and bank balance rose to ₹528.78 lakhs, reflecting strong liquidity.

(₹ in Lakhs)	FY25	FY24	FY23
Revenue from Operations	7,494.46	4,930.50	1,195.57
Net Profit	997.52	577.58	156.61
EBITDA	1,363.27	772.28	211.48
Net Worth	1,736.71	739.19	161.61
Earnings Per Share (₹)	11.34	6.56	2.26
Cash and Bank Balance	528.78	230.75	14.10

The company has shown strong YoY growth in revenue and profitability, supported by a scalable, asset-light model. The results underscore the company’s continued financial growth and operational strength.

Shareholding Structure

Promoter Fahim Batliwala currently holds 87,98,944 shares, while Ashma Fahim Batliwala holds 176 shares. Together, the promoters hold 99.99% of the pre-issue equity capital. Post-issue, at least 20% of the post-issue capital will be locked in for three years as part of the minimum promoter contribution, as per SEBI ICDR Regulations.

About Simca Advertising

Simca Advertising Limited, incorporated in June 2022, operates in the out-of-home (OOH) media segment. It offers static and digital advertising solutions across hoardings, gantries, kiosks, transit media, and other formats. The company manages over 100 media assets across Mumbai and Maharashtra. Its strategy focuses on transitioning to high-yield LED infrastructure and digital OOH (DOOH) platforms, leveraging proprietary locations and partnerships.

Note: All financial figures and forward-looking statements are based on the Draft Red Herring Prospectus filed on June 30, 2025. Final issue size, price band, and share allotment details will be disclosed in the Red Herring Prospectus (RHP) before the IPO launch.

REF: https://nsearchives.nseindia.com/emerge/corporates/content/Registration_30062025192022_DRHP_Simca.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations