💡 At a Glance
Adcounty Media India Ltd wants to be your go-to “BrandTech” partner — a mix of ad agency, performance marketing wizard, and tech platform. Their ₹50.69 Cr IPO is 100% fresh issue with strong financials and ~66% YoY PAT growth. But with a P/E of nearly 14x, a post-IPO promoter holding dip from 89% to 65%, and loose spending plans (“Unidentified Acquisition”), is this a tech-tastic listing or another Jaipur-based juggernaut going juggad?
🎬 1. Introduction with Hook
“Marketing is storytelling. And this IPO? Definitely fiction-adjacent.”
Adcounty Media India is selling a dream — of clicks, conversions, and CPMs. Their IPO opens June 27 and closes July 1, priced at ₹85 per share, and will list on BSE SME.
- Minimum retail bid: ₹1.36 lakh
- Anchor raised ₹14.33 Cr (solid)
- Subscription on Day 1: Already 2.21x!
But scratch the glossy brochure, and you find:
1️⃣ Unclear client metrics
2️⃣ 4 co-founders + 1 corporate promoter = crowded cap table
3️⃣ “Programmatic advertising tool” with no working demo (RHP mein bhi nahi)
Let’s zoom into the pixels.
🛠️ 2. WTF Do They Even Do? (Business Model)
In short, Adcounty helps brands get clicks, installs, leads, and dopamine hits.
🧠 Services Offered:
- Programmatic Ads (via in-house tool BidCounty)
- SEO / Social / PPC / CPI / CPL / CPA / CPS ← every acronym in the ad biz
- Market Research + User Acquisition Analytics
- Running own websites & mobile apps (unclear monetization)
💼 Clients include:
- Zepto
- ShareChat
- Fi.Money
- PolicyBazaar (PB Fintech)
- BankSathi
- MUV
Sounds fancy, right? But the RHP doesn’t explain:
- % revenue from each client
- Repeat business rate
- Any international revenues (despite 47 countries)
📊 3. Financials Overview – Profit, Margins, ROE, Growth
| FY | Revenue (₹ Cr) | PAT (₹ Cr) | PAT Margin | ROE |
|---|---|---|---|---|
| FY23 | 53.64 | 7.64 | 14.2% | 64.1% |
| FY24 | 43.24 | 8.28 | 19.1% | 40.8% |
| FY25 | 69.58 | 13.75 | 19.96% | 47.28% |
📈 Growth YoY FY24 → FY25:
- Revenue up 61%
- PAT up 66%
Margins look stable. But FY24 revenue dip is odd. What happened there?
💸 4. Valuation – Cheap, Meh, or Crack?
Let’s break it down:
- IPO Price: ₹85
- EPS (post-issue): ₹6.11
- P/E (post-issue): 13.91x
- Market Cap: ₹191.26 Cr
- P/B: 3.71x
🎯 Fair Value Estimate:
Assume FY27 PAT = ₹25 Cr (growing at 22% CAGR)
| P/E | Market Cap | FV per Share |
|---|---|---|
| 12x | ₹300 Cr | ₹133 |
| 16x | ₹400 Cr | ₹178 |
| 20x | ₹500 Cr | ₹222 |
📌 Fair Value Range: ₹133–₹178
IPO at ₹85 looks fairly priced with upside — if growth sustains and marketing budgets don’t shrink.
🔥 5. What’s Cooking – News, Triggers, Drama
- ✅ Strong Anchor Backing: ₹14.33 Cr at ₹85/share
- 💰 Aggressive Expansion: ₹25 Cr for working capital, ₹14 Cr for capex
- 🧩 Unidentified Acquisitions planned (this could be either brilliant or disaster)
- 🪙 IPO fully fresh issue – promoters not cashing out (thumbs up)
Also… Jaipur-based digital ad company + SME IPO = flashbacks of other tech-y but sus SME listings. 👀
🧾 6. Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Assets | ₹47.92 Cr |
| Net Worth | ₹37.90 Cr |
| Debt | ₹0.29 Cr (negligible) |
No red flags. Clean books. Solid net worth buildup.
💸 Fresh IPO proceeds will double their balance sheet size. That’s significant.
💰 7. Cash Flow – Sab Number Game Hai
Cash flow statement isn’t fully detailed, but:
- ~20% PAT margin + low debt + rising topline
- High EBITDA (₹18.25 Cr on ₹69.5 Cr rev = ~26%)
- Expect positive cash from operations and minimal financing cost
Cash usage depends on how wisely they deploy the ₹50 Cr war chest post-IPO.
📉 8. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| PAT Margin | 19.96% |
| EBITDA Margin | 26.49% |
| ROE | 47.28% |
| ROCE | 47.27% |
| P/E | 13.91x |
| P/B | 3.71x |
🔥 These are startup-y numbers — juicy returns, fat margins, and not insanely expensive valuation. But one bad quarter and all these flip fast in SME land.
💸 9. P&L Breakdown – Show Me the Money
FY25 Revenue = ₹69.58 Cr
PAT = ₹13.75 Cr
So where’s it coming from?
RHP doesn’t split revenue by:
- Geography
- Client size
- Product vertical (SEO vs programmatic vs CPI)
All we know: they do everything for everyone everywhere. Sounds like a lot, no?
🧪 10. Peer Comparison – Who Else in the Game?
| Company | Revenue (₹ Cr) | PAT Margin | P/E | Model |
|---|---|---|---|---|
| Vertoz | 113 | 9% | 30x | Programmatic Ads |
| Affle India | 1,700+ | 18% | 45x | B2B Mobile AdTech |
| Brightcom (👀) | — | — | — | Let’s not go there |
| Adcounty | 69.5 | 20% | 13.9x | Full-stack digital agency |
Adcounty is a mini-Vertoz with better margins but smaller scale.
And waaaay cheaper (for now).
🧠 11. Miscellaneous – Shareholding, Promoters
👥 Promoters:
- Aditya Jangid
- Abbhinav Rajendra Jain
- Delphin Varghese
- Chandan Garg
- Vartika Dangayach
- Innovana Thinklabs Ltd (company promoter)
📉 Pre-IPO Promoter Holding: 89.14%
📈 Post-IPO Promoter Holding: 65.51%
⚠️ Heavy dilution — but to fund growth, not exit. Anchor lock-ins till Sep 30.
🎯 12. EduInvesting Verdict™
📢 Adcounty = AdWords meets Rajasthan hustle.
- Financials? Strong
- Valuation? Fair
- Sector? Hot
- Risk? Real
They might be India’s first SME BrandTech unicorn story.
Or this could be just another PPC-pitch that burns too fast.
🧃 Verdict: “Drink the Kool-Aid… but also read the nutrition label.”
If the programmatic engine delivers, there’s real upside.
If not — you just bought digital mirage at ₹85/share.
✍️ Written by Prashant | 📅 June 30, 2025
Tags: Adcounty Media India IPO, SME IPO 2025, BrandTech IPO, Adcounty Review, Adtech India IPO, Jaipur Startups, EduInvesting, IPO Valuation
