Liqvd Digital India Limited, a Mumbai-based full-service digital marketing agency, has filed its Draft Red Herring Prospectus (DRHP) for an initial public offering. The company is raising ₹26.16 crore through a fresh issue to fund strategic acquisitions and infrastructure development. In FY2026, Liqvd Digital reported consolidated revenue of ₹60.24 crore, reflecting significant growth following the acquisition of AdLift Marketing Private Limited.

About the Company

Founded in 2013, Liqvd Digital India operates as a creative-first digital marketing agency headquartered in Mumbai. The company provides end-to-end solutions including media planning and buying, social media management, content creation, influencer marketing, SEO, and performance marketing. It serves clients across IT & Communication, FMCG, BFSI, logistics, and healthcare sectors.

A key milestone was the strategic acquisition of AdLift Marketing Private Limited in April 2025. This move expanded Liqvd Digital’s capabilities into SEO, AI-driven content creation, and U.S. markets, positioning it as an integrated solution provider. The company operates across four verticals: Media, Retainer, Project, and Production. It has served 85 clients over the last three years, with repeat business contributing 91.73% of standalone revenue in FY2025.

Financial Performance

Liqvd Digital’s financials show substantial growth in FY2026, largely due to the consolidation of AdLift Marketing. Revenue from operations grew at a CAGR of 82.66% to ₹60.24 crore (consolidated) in FY2026, up from ₹24.87 crore (standalone) in FY2025. Profit after tax (PAT) increased to ₹6.79 crore in FY2026 from ₹2.25 crore in FY2025. The company reported an EBITDA margin of 18.69% in FY2026.

Total assets grew to ₹57.83 crore in FY2026 from ₹33.33 crore in FY2025, reflecting acquisition-related goodwill and intangibles. Cash flow from operations recovered to ₹1.52 crore in FY2026 after a negative outflow of ₹0.46 crore in FY2025.

Why the Company Is Raising Funds

The proceeds from the fresh issue will be utilized for specific strategic objectives:

• AdLift Acquisition: ₹9.00 crore to acquire the remaining 23.21% stake in AdLift Marketing Private Limited, making it a wholly-owned subsidiary.
• Video Content Production Hub: ₹10.59 crore to establish a Full Scale Video Content Production Hub across Mumbai and Gurgaon, integrating AI-driven automation.
• Working Capital: ₹6.57 crore to meet incremental working capital requirements arising from business expansion.
• General Corporate Purposes: Balance net proceeds will fund inorganic growth through unidentified acquisitions and general corporate purposes, including repayment of borrowings.

Business Strengths

Liqvd Digital highlights its full-service digital marketing capabilities, enhanced by the AdLift acquisition. The company boasts an experienced management team with a combined 82 years of industry experience. Its diversified client portfolio includes high-growth sectors, with strong client retention evidenced by high repeat business percentages. Technological differentiation is provided by proprietary platforms like 'iManage' for workflow management and 'Tesseract', an AI lab developed by AdLift for real-time tracking across AI search platforms.

Key Risks

Investors are advised to note several material risks disclosed in the DRHP:

• Revenue Concentration: The corporate promoter, Concept Communication Limited, contributed 12.62% of consolidated revenue in FY2026. Additionally, the top 10 clients accounted for 52.12% of revenue in FY2026.
• Statutory Dues Delays: The company has delayed payments of statutory dues including GST, TDS, PF, and ESIC, aggregating ₹1,073.94 lakhs, which has attracted regulatory notices.
• High Attrition: Employee attrition stood at 44.24% in FY2026, significantly above the industry average, potentially impacting operational continuity.
• Cash Flow Volatility: The company recorded negative operating cash flow in FY2025 and significant investing outflows in FY2026 due to acquisitions.
• Cybersecurity: The company lacks a formal information security framework or disaster recovery system, increasing exposure to cyber threats.
• No Long-Term Contracts: Except for retainer business, most engagements are short-term, leading to revenue volatility.

Important IPO Dates

• IPO Opening Date: 23-Sep-2026
• IPO Closing Date: 25-Sep-2026
• Allotment Date: 28-Sep-2026
• Listing Date: 30-Sep-2026

Offer Details

The IPO consists entirely of a fresh issue component. There is no Offer for Sale (OFS). The price band, lot size, and face value are not yet disclosed in the DRHP data. The identified objects total ₹26.16 crore, with additional proceeds allocated to general corporate purposes.

Bottom Line

Liqvd Digital India presents a growth story driven by organic expansion and the strategic acquisition of AdLift Marketing. With consolidated revenue reaching ₹60.24 crore in FY2026 and a clear plan to utilize IPO proceeds for further integration and infrastructure, the company aims to strengthen its market position. However, investors must weigh these prospects against risks related to client concentration, statutory compliance delays, and high employee attrition.