Inspire Films IPO entails to raise Rs 21.23 crores. The issue is entirely a fresh issue of 35.98 lakh shares. Inspire Films, is engaged in creating and producing content for television and OTT platforms
| IPO opens | Sep 25, 2023 |
| IPO Closes | Sep 27, 2023 |
| IPO Size (Rs.) | ₹21.23 Cr |
| IPO Size (shares) | 3,598,000 shares |
| Breakup | only Fresh issue |
| Face Value: | ₹ 10 |
| IPO Price in Rs : | ₹56 to ₹59 |
| Minimum Lot | 2000 Shares |
| Listing At | NSE SME |
| Market Maker Quota | 5.00% |
| Anchor Quota | 28.48% |
| QIB Quota | 19.00% |
| NII Quota | 14.26% |
| Retail Quota | 33.25% |
| Lead Manager | Narnolia Financial Services Ltd |
| Registrar | Maashitla Securities |
| Market maker | Share India Securities |
About Inspire Films Limited:
- Inspire Films, since its inception in 2012, has been creating and producing content for television and OTT platforms.
- Inspire Films is primarily engaged into the business of creation, production, distribution, and exhibition of television and digital content across broadcasting channels, apps and digital platforms as well as content writing,
- Inspire Films is creating content for linear broadcast channels such as Star Plus, Zee TV, Colors TV, Sony and others, with a primary focus on the Hindi General Entertainment Channels (GEC) segment.
- It has worked for 35 popular television shows like ‘Ek Veer Ki Ardaas Veera’, ‘Sadda Haq’, ‘Kuchh Rang Pyar Ke Aise Bhi’, ‘Ishq Main Marjawan’ and web series like ‘Dear Ishq’, ‘Tu Zakhm Hai’ and many more.
- company has a B2B Business Model, and we currently operate in 3 different Business verticals:
- TV – Hindi GEC (General Entertainment Channels)
- Digital Content and platforms (OTT)
- Regional content
- Yash Arabinda Patnaik and Beyond Dreams Entertainment Private Limited are the company’s promoters.
Financials:
| Particulars/ Rs. Lacs | March 31, 2023 | March 31, 2022 | March 31, 2021 |
| Revenue from operation | 4883.16 | 3814.77 | 1938.39 |
| Profit Before Tax | 553.16 | 39.52 | -111.25 |
| Profit after Tax | 404.82 | 25.92 | -83 |
| Share Capital | 1.06 | 1 | 1 |
| Net Worth | 1311.22 | 806.29 | 780.37 |
| NAV | 12,714 | 8,063 | 7,804 |
| Total borrowings | |||
| – Long Term | 728.69 | 211.16 | 240.11 |
| – Short Term | 108.16 | 148.79 | 785.44 |
| Post issue Share Capital | 1,360.90 | ||
| FV | 10.0 | ||
| IPO price | 59.0 | ||
| EPS Fy23 | 3.0 | ||
| PE Fy23 | 19.8 | ||
| Market cap in Lacs | 8,029.3 | ||
| Market Cap/sales | 1.6 |
Anchor
Inspire Films IPO: Salient Points
- Media and Entertainment Industry in India is predicted to experience a Compound Annual Growth Rate (CAGR) of 10% .
- OTT (over-the-top) streaming, a key driver of growth, is expanding most rapidly in emerging markets like India.
- Inspire Films Limited is a prominent player in content creation and distribution, specializing in television and digital content across diverse broadcasting channels, digital platforms, and applications.
- The proceeds of the IPO will help Inspire Films to cater to the company’s working capital requirements, and general corporate purposes facilitating strategic growth and development and covering the expenses.
- Further it is also collaborating with major over-the-top (OTT) platforms like Amazon Mini, Disney+ Hotstar, SonyLiv, MX Player, and Jio Cinema, delivering content to digital audiences.
- IPO will help the Company to expand its business further and create better content.
- Company has availed loans from Cholamandalam Investment and Finance Company Limited, HDFC Bank, Daimler Financial Services.
- It listed peers enjoy flowing valuations:
- Balaji Telefilms ( in loss)
- Bodhi Tree Multimedia Limited (PE 47.3x )
- V R Films and Studios (PE 57.6x )
- Inspire Films IPO is coming at a PE ratio of 19.8x(fy23 earnings).
- I may apply in Inspire Films IPO subject to availability of funds even as the issue is not cheap. The key risk remains from any overall significant market meltdown and overcrowding of SME issues.
- Inspire Films IPO could attract some fancy due to segment in which it operates.
- GMP as reported on social media has been around Rs. 30.
- Narnolia Financial Services Ltd is the Lead Manager and has a reasonable but limited record. Past issues handled by them include Cellecor Gadgets, Yudiz Solutions Limited. Drone Destination.
- SME IPO are quite illiquid and volatile and exit options sometimes is delayed & there are risks from impending action by regulators.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.