As stocks make new highs almost on a daily basis, the lure to raise equity money is afflicting companies from sectors that hitherto remained alien to capital markets. In what could be a first not just for the segment it operates in but also for its industry in general, out-of-home advertising firm Laqshya plans to float an initial public offering to raise between Rs 350 crore and Rs 450 crore.
The IPO will comprise both stake sale by some of the existing private equity investors of the company and also sale of new shares to raise funds for the company’s expansion. The company counts Warburg Pincus, UTI Ventures and Ascent Capital as its investors.
An arm of IDFC Bank and another domestic merchant banker are advising the outdoor advertising firm on the public offering.
The 20-year-old Laqshya Media Group is the largest player in the out-of-home advertising industry in India that is dotted with small, family-run enterprises. Besides Laqshya, Times OOH, Pioneer Publicity and Brite Media Group are among the organised players.
Physical OOH advertising in the form of roadside billboards dominate the segment. Establishment of metros in cities like Delhi, Lucknow and Bengaluru has led to the industry embracing new concepts like train wraps. Street furniture, illuminated bus stops and airports are also the new hotspots for OOH advertising.
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