Cash Ur Drive NSE SME IPO review (Apply)

•    The company is engaged in Out of Home (OOH) advertising and related services.
•    It is offering diverse range of advertising solutions that includes transit media, outdoor media, print media, and digital media.
•    The financial data shows likely trends ahead with rising scope.
•    Based on recent financial data, the issue appears fully priced.
•    Investors may park funds for medium to long term.

ABOUT COMPANY:
Cash Ur Drive Marketing Ltd. (CUDML) is an Out of Home (OOH) advertising company offering a diverse range of advertising solutions including Transit Media, Outdoor Media, Print Media and Digital Media Services, tailored to help clients effectively reach their target audience. Initially, its focus was on advertising through commercial vehicles, such as cab advertising. As the company expanded, it broadened service offerings to include bus branding, auto hood advertising, billboard campaigns, and other outdoor media solutions. Further to capitalize on the growth of the Electric Vehicle Industry, CUDML started doing advertisements on EV Vehicles and EV charging and battery swapping stations.

Its streamlined process ensures timely publication or placement of advertisements, enabling clients to effectively reach their target audience. It offers end-to-end services which includes assisting clients in selecting suitable advertising channels within their budget and regional preferences, designing advertisements, managing negotiations and bookings of ad-space with chosen media agencies and also acting as intermediaries connecting clients with relevant media outlets.

Further, the company has recently expanded its services to include the setup of EV charging stations and battery swapping stations. It has successfully secured the following agreements for establishing these stations.

•    Setup of 68 EV charging stations at different locations in Delhi, along with 10-year advertising rights.
•    Setup of 15 EV charging and 19 battery swapping stations at different locations in Chandigarh.
•    Setup of 10 EV charging stations at different locations in Dehradun, along with 10-year advertising rights.
•    Setup of 5 EV charging stations at different locations in Agra.

Currently, CUDML is subcontracting the contracts acquired under this segment to one of its promoter group companies, i.e., Cash UR Drive Electric Vehicles Private Limited, which has relevant experience in this segment. Additionally, it has entered into a revenue-sharing agreement with Cash UR Drive Electric Vehicles Private Limited for the execution of these contracts and the installation of EV charging and battery swapping stations. Trade media has a lion shares (80+%) in its total revenue, and the rest from exclusive media. Its service portfolio involves a diverse range of offerings designed to meet the needs of clients and maximize the effectiveness of their advertising campaigns. 

It is accredited with Indian Newspaper Society (INS) and registered with DAVP. The Company has its branches located at Chandigarh, Lucknow, Mumbai and Noida. Its clients are sourced either directly or through media agencies which include corporate clients across numerous sectors such as Pharmaceuticals, education, electronics, automobiles, FMCG, apparel, insurance, housing, hospitals, financial services, aviation, government organizations through government tender process, and more.

As of the date of RHP, the company had exclusive media rights for 1100 E-Buses, 150 Buses, 13575 cabs, 87 EV charging stations, 7 Uniplole cluster, 36 public toilets. Revenue from repeated customer is 73.67% for FY25 and the rest from new customers. As of June 30, 2025, it had 87 employees on its payroll.

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route combo IPO of 4676000 equity shares of Rs. 10 each to mobilize Rs. 60.79 cr. at the upper cap. It has announced a price band of Rs. 123 – Rs. 130 per share. The issue consists of 4469000 fresh equity shares issue (worth Rs. 58.10 cr. at the upper cap), and an (OFS) Offer for Sale of 207000 shares (worth Rs. 2.69 cr. at the upper cap). The issue opens for subscription on July 31, 2025, and will close on August 04, 2025. The minimum number of shares to be applied is for 2000 shares and in multiples of 1000 shares, thereafter. Post allotment, shares will be listed on NSE SME Emerge. The issue constitutes 26.50% of the post-IPO paid-up capital of the company. From the net proceeds of the IPO, it will utilize Rs. 33.00 cr. for working capital, Rs. 5.31 cr. for investment in technology, Rs. 5.98 cr. for capital expenditure, and the rest for general corporate purposes. 

The IPO is solely lead managed by Narnolia Financial Services Ltd., and Bigshare Services Pvt. Ltd., is the registrar to the issue. Prabhat Financial Services Ltd. is the market maker. The issue is underwritten to the tune of 15.01% by Narnolia Financial, and to the tune of 84.99% by Prabhat Financial.

The company has issued initial equity shares at par value. It has issued further equity shares in the price range of Rs. 125 – Rs. 2400 per share between March 2014, and November 2024. It has also issued bonus equity shares in the ratio of 146 for 19 in May 2022, 59 for 1 in November 2023, 1 for 1 in July 2024. The average cost of acquisition of shares by the promoters/ selling stakeholders is Rs. NIL per share. 

Post-IPO, company’s current paid-up equity capital of Rs. 13.18 cr. will stand enhanced to Rs. 17.65 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 229.40 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted a total income/net profit of Rs. 81.31 cr. / Rs. 5.15 cr. (FY23), Rs. 97.77 cr. / Rs. 9.22 cr. (FY24), Rs. 142.18 cr. / Rs. 17.68 cr. (FY25). 

For the last three fiscals, the company has reported an average EPS of Rs. 10.36 and an average RoNW of 45.67%. The issue is priced at a P/BV of 3.06 based on its NAV of Rs. 42.48 as of March 31, 2025, and at a P/BV of 1.97 based on its post-IPO NAV of Rs. 66.05 per share (at the upper cap). 

If we attribute FY25 super earnings on post-IPO fully diluted equity capital, then the asking price is at a P/E of 12.97. Based on FY24 earnings, the P/E stands at 24.90. Thus, the issue appears fully priced.

For the reported periods, the company has posted PAT margins of 6.48% (FY23), 9.83% (FY24), 12.69%, (FY25), and RoCE margins of 36.45%, 52.49%, 41.55%, respectively for the referred periods. 

DIVIDEND POLICY:
The company has not paid any dividends for any financial year so far. It will adopt a prudent dividend policy, based on its financial performance and future prospects.

COMPARISION WITH LISTED PEERS:
As per the offer document, the company has shown DAPS Advertising, Bright Outdoor Media., as their listed peers. They are trading at a P/E of 9.92, and 43.9 (as of July 25, 2025). However, they are not truly comparable on an apple-to-apple basis.

MERCHANT BANKER’S TRACK RECORD:
This is the 20th mandate from Narnolia Financial in the last three fiscals including the ongoing one.  Out of the last 10 listings, 3 opened at discount, and the rest with premium ranging from 2.60% to 90% on the date of listing.