Baweja Studios Ltd IPO : Review, Valuation, Date & GMP

Baweja Studios Limited IPO  - Complete Overview

Baweja Studios Limited, established in 2001, is a renowned content production house in the Bollywood film industry, led by founder Harjaspal Singh Baweja (Harry Baweja) and current Chairman and Managing Director, Harman Baweja. Harry Baweja, a renowned director, has been a backbone for the company's success. The company, known for successful projects like Chaar Sahibzaade and Love Story 2050, is actively involved in the production of Hindi and Punjabi films, as well as trading movie rights.

By June 2023, Baweja Studios had completed 22 projects, with 6 films in production and 7 in pre-production. The company, with a focus on technology-based commercial films, aims to innovate in storytelling and leverage technological advancements. They are involved in various areas, including digital films, web series, animation films, Punjabi films, advertisement films, and music videos.

With a history of over three decades in the film industry, Harry Baweja's leadership has played a pivotal role in the company's growth. Currently, the company has 16 full-time staff members across different departments as of June 22, 2023.

 

Baweja Studios Limited IPO Overview

Baweja Studios Limited IPO date is slated to be open for subscription from January 29, 2024, to 1 February , 2024. This NSE SME IPO follows a Book Built Issue IPO.

Baweja Studios Limited IPO price is fixed at Rs. Rs.170 - Rs.180 per share. 

The total issue size of this IPO amounts to Rs.97.20 CR. The company has reserved 11% for institutional investors, 42% for non-institutional investors, and 42% for retail investors. 

 

 

Baweja Studios Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	29 January 2024
IPO Closing Date	1 February 2024
IPO Allotment Date	2 February 2024
Refund initiation	5 February 2024
IPO Listing Date	6 February 2024

 

Baweja Studios Limited IPO Details

IPO Opening & Closing Date	29 January to 1 February 2024
Face Value	Rs. 10 per share
Issue Price	Rs.170 - Rs.180  per share
Lot Size	800 Shares
Price of 1 lot	Rs. 144,000
Total Issue Size	5,400,000 shares (aggregating up to Rs. 97.20 Cr)
Offer for sale	1,400,000 shares of Rs. 10 (aggregating up to Rs. 25.20 Cr)
Fresh issue	4,000,000 shares (aggregating up to Rs. 72.00 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Skyline Financial Services Private Ltd

 

 

Baweja Studios Limited IPO Lot Details

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	800	Rs. 144,000
Maximum Lot Investment (Retail)	1 lot	800	Rs. 144,000
Minimum Lot Investment (HNI)	2 lot	1600	Rs. 288,000

 

Baweja Studios Limited IPO Reservation

QIB Shares Offered	Maximum 11%
Retail Shares Offered	Minimum 42%
Other Shares Offered	Minimum 42%

 

Company Financial

As of March 31, FY 23, the company reports significant total assets, robust total revenue, and a considerable net worth.

(Amount in Lakhs)

Period	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Total Assets	4,202.57	4,489.98	3,056.03
Total Revenue	3,890.11	7,628.31	4,096.79
PAT	435.33	796.91	275.94
Net worth	2,422.07	1,986.28	724.07
Reserve & Surplus	979.37	543.58	181.07
Total Borrowings	810.91	142.38	266.86

 

Revenue by Operations

In the latest financial year (FY 23), the company earned significant money from its main operations, along with additional income, leading to a substantial overall revenue.                          

(Amount in Lakhs)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Revenue from operations	3,866.35	7,379.05	4,071.02
Other Income	23.75	249.26	25.77
Total operations	3,890.11	7,628.31	4,096.79

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• To meet the working capital requirements;

• General corporate purposes

 

Promoters and Management of Baweja Studios Limited IPO

1. Harjaspal Singh Baweja. 

2. Paramjit Harjaspal Baweja.

3. Harman Baweja.

4. Rowena Baweja.

Pre-issue Promoter Shareholding	99.99%
Post-issue Promoter Shareholding

 

Baweja Studios Limited IPO Lead Managers

• Fedex Securities Pvt Ltd 

 

Peers of Baweja Studios Limited IPO

Baweja Studios Limited IPO looks promising in comparison to other similar companies in terms of its value.

Name of the Company	Face Value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
Baweja Studios Limited	10	32.59	5.52
Shemaroo Entertainment Ltd	10	48.30	3.45
Eros International Media Ltd.	10	-2.31	-12.48
Zee Entertainment Enterprises Ltd.	1	500.10	0.50
Mukta Arts Ltd.	5	11.24	8.33
Vels Film International Limited	10	66.43	1.50

 

 

Evaluation

The IPO is priced within the range of Rs. 170 to Rs. 180 per share.

 

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 5.52 from the last year, the resulting P/E ratio is 32.60x.

- Taking into account the weighted EPS of Rs 6.16 for the last three years, the P/E ratio amounts to 29.22x.

 

Comparative Analysis with Listed Peers:

- Zee Entertainment Enterprises Ltd. has a P/E ratio of 500.10x (the highest).

- Eros International Media Ltd. has a P/E ratio of 2.31x (the lowest).

- The industry's average P/E is 124.79x.

 

As a result, the IPO price range, with a P/E ratio ranging from 32.60x to 29.22x, seems highly undervalued in comparison to the industry average of 124.79x .

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

1. Well-established company in India's entertainment industry.

2. Long-standing relationships with clients.

3. High standards and quality assurance.

4. Diverse and growing Content Library.

5. Technology-driven and scalable business model.

6. Collaboration with top Platforms/Distributors.

7. Experienced promoters and management team.

 

IPO's Weaknesses

1. Revenue and growth dependent on the Content Library.

2. Content Piracy threatening revenues.

3. High working capital requirements.

4. Uncertain audience response to produced content impacting the business.

5. Operating in a competitive market.

 

 

IPO GMP Today

The latest  GMP of Baweja Studios IPO is Rs. 2.

 

Conclusion

Baweja Studios Limited, a well-established player in the Indian entertainment industry, is set to launch its IPO with a price range of Rs. 170 to Rs. 180 per share. The company's solid financials, experienced leadership, and diverse content library contribute to its strengths. However, challenges such as content piracy, high working capital requirements, and market competition pose potential weaknesses. The IPO's valuation, with a P/E ratio quite below the industry average, suggests it could be undervalued.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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