Independent PR firm Value 360 Communications Limited files DRHP for IPO on NSE Emerge

Value 360 Communications Limited has filed its DRHP on 29th July for the launch of its IPO. This is the first time that an Indian PR firm has opted for the IPO route to raise funds.  The company now enters the silent period ahead of the actual IPO launch. It usually takes 90 days from the DRHP filing to IPO.

So far, mergers and sales to global PR and holding firms, such as WPP, We. Ketchum (Omnicom) and Publicis have been the main route to growth for Indian PR firms. 

Bengaluru-based 'The PRactice' had opted for homegrown investment from PR entrepreneurs Rishi Seth and Zach Janes ( Co-founders of Six Degrees)

The details as per NSE Emerge are as follows:

• Total Issue Size: Up to 42,55,000 Equity
• Issue Type: Fresh Issue and Offer for Sale (OFS) of Equity Shares of face value ₹10 each. 
• Issue Price: To be determined by the Book Building Process. "No assurance can be given regarding active or sustained trading in the Equity Shares or regarding the price at which the Equity Shares will be traded after listing."
• Platform: Proposed to be listed on the NSE EMERGE Platform of the National Stock Exchange of India Limited.
• SEBI ICDR Regulations: The Issue is being made pursuant to Regulation 229(2) and 253(1) of Chapter IX of SEBI ICDR Regulations, 2018. The company's post-issue paid-up capital will be more than ₹10.00 crore and up to ₹2,500 lakhs.
• Underwriting: The Issue will be 100% underwritten.
• Market Making: The company has entered into a 'Market Making Agreemen't for a minimum period of three years from the date of listing to ensure compulsory Market Making.

Key Financial Trends:

• Revenue from operations has decreased slightly from FY23 to FY24, but with a stable core business in PR.
• Profit after tax has seen significant growth in the ten months ended January 31, 2025 (₹430.02 lakhs) and FY24 (₹412.49 lakhs) compared to earlier years (FY23: ₹121.44 lakhs, FY22: ₹203.14 lakhs). This is attributed in the DRHP to effective cost management and strong operational performance.
• Employee Benefit Expenses are the largest cost component, reflecting the labour-intensive nature of the business.
• Debt-Equity Ratio has decreased significantly to 0.47 as of January 31, 2025, from 1.26 in FY24. "Due to a significant amount of repayment of loans, debts have decreased and consequently the ratio has decreased."

The DRHP further lays out the objectives of the Issue. 

A large portion of the funds has been earmarked for capital for growth, upgrading tech infrastructure, strengthening influencer marketing offerings and reducing debt. This includes: 

1. Funding working capital requirements for strategic growth initiatives: ₹1,270.60 lakhs
2. Funding capital expenditure for infrastructure and cutting-edge technology for content production verticals: ₹465.00 lakhs
3. Prepayment or repayment of certain outstanding borrowings: ₹450.00 lakhs
4. Investment in influencer marketing platform, Irida Interactive Private Limited (ClanConnect), and expanding ownership for potential future acquisition: ₹700.00 lakhs. The company aims for estimated ownership >51% by FY27.

Focusing on how the above will be achieved, the DRHP states that it will focus on:

• Deepening market penetration & regional expansion in PR: Strengthening presence in Western and Southern India, which are fast-growing PR markets.
• Expansion of Digital Ads and Content Solutions: Focusing on social media marketing, search marketing, performance marketing, and programmatic media.
• AI-powered creative content production: Launch of an AI-Powered Creative Studio.
• Strategic Investment in ClanConnect: To capture growth in the influencer marketing sector, projected to grow to over INR 13,800 Crore by 2030 (CAGR of 16%).
• Development of Hubscribe: A content publishing and monetisation platform leveraging subscription-based models and premium analytics.
• Business Model Innovations: Exploring the "PR for Equity" model to accelerate client acquisition and foster long-term partnerships with startups.

Management and Governance:

• Board of Directors: Includes Kunal Kishore (chairman and managing director), Gaurav Patra (whole-time director), Manisha Chaudhary (executive director), Rajesh Agrawal (non-executive, independent director), and Shenaz Bapooji (independent director).