Yaap Digital set for March 5 listing; IPO subscribed nearly 4 times

Digital marketing and technology services firm Yaap Digital opened its initial public offering (IPO) from February 25 to February 27, attracting steady interest from investors across categories.

The IPO is priced in the range of Rs 138 to Rs 145 per share. Investors applying under the individual category can bid between Rs 2 lakh and Rs 5 lakh. One lot consists of 2,000 shares, which means an application at the upper price band amounts to Rs 2,76,000.

The issue was subscribed 3.84 times in total. The Qualified Institutional Buyers (QIB) segment saw the highest demand at 7.87 times subscription. The Non Institutional Investor (NII) category was subscribed 3.95 times, while the Retail Individual Investor (RII) portion was subscribed 1.48 times.

The allotment of shares is said to have been finalised on March 2 with refunds or fund unblocking taking place on the same day. The company is tentatively scheduled to list on the stock exchange on March 5.

Founded in 2016 by Atul Hegde, Yaap Digital offers digital marketing, content and technology services. Its work includes influencer marketing, content creation, performance marketing, UI and UX design, media buying and marketing analytics. The company uses data tools and AI based technologies along with content production capabilities to run campaigns for brands. It manages influencer campaigns, creates short form content for platforms and executes paid ads on tools such as Google Ads and Meta Ads Manager. It also offers analytics, customer journey mapping and campaign reporting systems.

The IPO is a fresh issue of shares, which means the money raised will go directly to the company. 

According to its red herring prospectus, Rs 34 crore will be used for part payment towards the proposed acquisition of GoZoop Online Private Limited. Around Rs 4.01 crore will be used to set up an AI led short form content production hub. Another Rs 16 crore will go towards working capital requirements. The remaining funds will be used for future acquisitions and general corporate purposes.

The YAAP and GoZoop transaction will involve a mix of equity and cash and is subject to due diligence and regulatory approvals.

Once completed, the merged entity will be led by YAAP. Together, the two companies aim to combine their strengths in performance media, customer experience, creative services, influencer and creator marketing, analytics and technology solutions. The goal is to offer brands end to end services across paid, owned and earned media.