Maxposure IPO envisages to raise Rs 20.26 crores. The issue is entirely a fresh issue of 61.4 lakh shares. Maxposure Limited provides personalized media and entertainment services across various platforms. The core competencies of Maxposure Ltd include in-flight entertainment, content marketing, technology, and advertising. 

About Maxposure Limited:

• Maxposure is a diverse new-age media and entertainment company offering 360-degree services across multiple distribution platforms. Specialising in customised solutions.
• Maxposure serves 4 segments i.e. Inflight Entertainment, Content Marketing, Technology and Advertising.
• Company through its long-standing experience and award-winning services has been able to diversify its offerings to include a wide spectrum of in-flight experiences, ranging from curated entertainment on IFE ( in flight entertainment) systems, on-board communication through hi-tech patented solutions, innovative inflight magazines, sampling on board, and strategic ambient advertising.
• Company also offers strategic and innovative advertisement platforms to an advertiser to target a flyer at every step of the journey starting from pre-boarding, on-board, and post-boarding. Generally, in order to stream content on-board, the airplane needs to have an in-built entertainment system however, in order to cater to low-budget airlines
• Company has devised a hardware solution, called ‘AeroHub’, through which content can be streamed wirelessly on the personal devices of the passengers in a cost effective manner.
• Company also offers content and digital marketing services for brand placement, growth and efficient audience engagement.
• It has its own sales team in 6 major cities in India and works with advertising representatives in major air traffic hubs around the world.
• The company has established offices in Delhi, Mumbai, Bengaluru, and Kolkata.
• Promoters of Company are Prakash Johari and Sweta Johari..

Financials: Maxposure Limited

Anchors: Maxposure IPO

Maxposure IPO: Salient Points

• The promoters current shareholding shall stand diluted to 73.64% from 84.31 at present. .
• The global in-flight entertainment & connectivity market is projected to grow from $7.48 billion in 2023 to $21.03 billion by 2030, at a CAGR of 15.9%.
• Technological advancements in terms of wireless connectivity have enabled passengers to use personal electronic devices in airlines, consequently driving the growth of the industry.
• Maxposure Limited, a prominent entity in the new-age media and entertainment sector, specializing in the aviation market,
• Institutional investors, which included India Ahead Venture Fund, Wallfort Financial Services Limited, and Finavenue Capital Trust-Finavenue Growth Fund, participated in the Pre-IPO placement in the company in November 2023.
• The Net Proceeds are proposed to be utilized in the manner set forth below:

• Company intends to use approximately ₹ 350 lakhs of the Net Proceeds towards (i) funding of expenses proposed to be incurred towards obtaining various certifications from the FAA and EASA for AeroHub and Patented Inviseo tray table; (ii) funding working capital requirements of our Company for manufacturing the Proposed Products; (iii) the working capital requirements of our Company in the ordinary course of business; (iv) prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company
• They have also successfully launched and managed projects outside of India, especially in the Indian subcontinent and the Middle East, such as, Gulf Air (Kingdom of Bahrain), Air Arabia (Sharjah), VFS (UAE), Jazeera Airways (Kuwait) to name a few. They plan on expanding operations in countries/ regions such as, Africa and further into the Indian Subcontinent.
• Company has cultivated a rich working relationship with all major content owners, studios and productions houses of the world along with original equipment manufacturer (OEM) of the airline owing to which they are able to offer content ranging from latest and classic Bollywood and Hollywood movies, television shows, audios, games, podcasts, destination videos, guides, etc as per the needs and specifications of the airline and its OEM’s. Company also has an ever-growing technical and production expertise with laboratory (“AeroLab”) enabled for performing quality control process, ranging from custom edits, metadata creation, duplication, audio enhancement to encoding/transcoding in any format for any system and post-production services, etc.
• Company specializes in curating, sourcing, licensing and adapting content which is tailor made for any airline as per their norms and requirement in print, audio and video for its inflight entertainment.
• In over 4,500 airlines around the world, only ~175 have Inflight Entertainment to their customers due to the high cost of the Inflight Screens and the annual maintenance costs.
• The Company sees this as an opportunity and has been investing in to building a wireless streaming server (“WMS”) which shall enable around 100 devices (Phone, tablets, Laptops) to stream content onboard at high speed. The AeroHub WMS will help airlines to offer IFE to customers at a ;lower cost to traditional Inflight Screens. It is aims to disrupt the market.
• In Dec 23, Maxposure Limited, announced the successful acquisition of Bluebird Advertising Pvt. Ltd. (Bluebird Advertising), a leading media buying and planning agency. The four-decade-old Bluebird Advertising, which is a member of the prestigious Indian Newspaper Society since 1982, is recognised for its innovative campaigns and client-centric approach. It has worked with more than 100 clients, including The World Bank, Asian Development Bank, Ministry of Ports, Shipping and Waterways, GOI, the US Embassy in India, State Bank of India, Kotak Mahindra Bank, The High Commission of the Republic of Maldives in India etc.
• Maxposure IPO is coming at a PE ratio of 17x(fy23 earnings) and 10.1x (fy24 annualized earnings).
• As per RHP, the company has shown Crayons Advertising as their listed peer. It is trading at a P/E of 37.8.
• I intend to apply in Maxposure IPO subject to availability of funds. The IPO looks to be priced quite reasonably and seems to have excellent prospects.
• Increased digitalization, changed lifestyle and increasing air travel, bode well for the company .
• GMP as reported on social media has been Rs. 60/-.
• GYR Capital Advisors Pvt. Ltd is the Lead Manager to the issue. with an outstanding record. Past issues handled by them include Kay Cee Energy & Infra Limited, Trident Techlabs Limited, Maitreya Medicare Limited, Basilic Fly Studio Limited, Srivari Spices and Foods Limited, Essen Speciality Films Limited, MCON Rasayan India Limited, Agarwal Float Glass India Limited, Anlon Technology Solutions Limited, Uma Converter Limited, Sabar Flex India Limited, Mafia Trends Limited, Pritika Engineering Components etc.
• SME IPO are much more risky and volatile than mainboard IPOs.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared 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.