Digikore Studios LTD IPO - Review, Valuation, Date & Todays GMP

Digikore Studios Limited - Complete Overview

Founded in the year 2000, Digikore Studios Limited is a renowned visual effects studio specializing in Visual Effects (VFX) services catering to a wide spectrum of projects including films, web series, TV series, documentaries, and commercials.

The company boasts an extensive and impressive portfolio featuring collaborations on notable projects such as "Thor: Love and Thunder," "Black Panther: Wakanda Forever," "Glass Onion: A Knives Out Mystery," "Deadpool," "Star Trek," "Jumanji," "Stranger Things," "The Last Ship," "Titanic," "Ghost Rider: Spirit of Vengeance," "Transformers: Age of Extinction," "Crouching Tiger, Hidden Dragon: Sword of Destiny," and many other prestigious productions.

Digikore Studios stands out as one of the select few studios in India to have undergone audits conducted by esteemed entities like TPN. Additionally, the company holds approvals for projects from renowned production houses including Disney/Marvel, Netflix, Amazon, Apple, Paramount, Warner Bros., and Lionsgate.

With a client base spanning India, North America, Europe, Australia, and New Zealand, Digikore Studios achieved a revenue of Rs 3555.83 lacs in the fiscal year 2023.

 

What does the company do?

Digikore Studios Limited is a visual effects studio that offers Visual Effects (VFX) for a diverse range of projects

 

 

IPO Overview

The Digikore Studios Limited IPO date is scheduled from September 25, 2023, to September 27, 2023. This SME IPO is a Book Built Issue and is expected to be listed on October 4, 2023.

The Digikore Studios Limited IPO price is set in the range of Rs.168 to Rs.171 per share, with a face value of Rs.10 per share. The total issue size for this upcoming SME IPO is Rs.30.48 Crores.

Out of the total issue size, the company has allocated 50% to institutional investors, 15% to non-institutional investors, and 35% to retail investors.

 

Digikore Studios Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	25 September 2023
IPO Closing Date	27 September 2023
IPO Allotment Date	29 September 2023
Refund initiation	3 October 2023
IPO Listing Date	4 October 2023

 

Digikore Studios Limited IPO Details 

IPO Opening & Closing Date	25 September to 27 September 2023
Face value	Rs.10 per Share
Issue Price	Rs.168 to Rs.171 per Share
Lot Size	800 Shares
Price of 1 lot	Rs.136,800
Issue Size	1,782,400 Shares (aggregating up to Rs. 30.48 Cr)
Offer for sale	521,600 shares of Rs. 10 (aggregating up to Rs. 8.92 Cr)
Fresh issue	1,260,800 Shares (aggregating up to Rs. 21.56 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Digikore Studios Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

Digikore Studios Limited IPO Reservation

Institutional Share Portion	50%
Non-institutional Share Portion	15%
Retail Share Portion	35%

 

Company Financial

Amount in Lakhs

Period	31 Mar 2022	31 Mar 2023	30 June 2023
Total Assets	825.24	1932.41	2518.83
Total Revenue	2488.39	3692.38	1186.49
PAT	46.54	389.17	270.89
Net Worth	153.48	542.66	813.30
Reserve & Surplus	35.08	424.26	694.30
Total Borrowings	349.46	608.55	912.25

 

Geographic-wise Revenue of the Company

(Amount in Lakhs)

Country	2022-23	2021-22	2020-21
North America	2,795.93	1,046.13	336.30
Europe	366.29	289.97	73.02
Australia and New Zealand	31.21	2.84	0.00
Rest of the world including India	63.95	1162.36	78.93
Total	3257.38	2501.30	489.15

 

Objective of the Issue

The company intends to use the fresh proceeds for the following purposes:

• Meeting working capital needs.
• General corporate purposes.
• Covering offer-related expenses.

 

Promoters and Management of Digikore Studios Limited

Mr. Abhishek Rameshkumar More and M/s. Shree M P J Cement Works LLP are the Promoters of the Company.

Pre-issue Promoter Shareholding	93.38%
Post-issue Promoter Shareholding	66.55%

 

Peer Comparison 

Below are the listed peers of Digikore Studios Limited

Company Name	Sales (Rs. in Cr.)	EPS (Rs.)	P/E Ratio
Digikore Studios Limited	3,555.83	36.95	-
Phantom Digital Effects Limited	5,873.86	1,619.56	33.25
Prime Focus Limited	8,137.60	(2,446.06)	(106.95)

 

IPO's Valuations

The Digikore Studios Limited IPO price is set between the range of Rs.168 to Rs.171 per share, and the EPS is Rs. 36.95. Considering the upper price limit, the P/E ratio of the company for the IPO valuation stands at 4.63.

 

Dividend Policy 

The company has not distributed dividends in any fiscal year, and future dividend payments depend on the financial performance of the company.

 

IPO's Strengths 

• Globally recognized brand reputation within the VFX industry.
• A capable management team.
• Pioneers in the VFX sector, being one of the early VFX studios in India.
• Extensive international industry networks and affiliations.
• Exceptionally skilled professionals and rigorous quality control throughout the production process.

 

IPO Weaknesses 

• A significant portion of the company's revenue is generated through exports.
• The majority of the company's revenues come from its top 10 and top 5 customers.
• The Company, along with its Promoters and Directors, is currently involved in certain legal proceedings.
• The Auditor of the company did not include the financials for the audit report ending on March 31, 2023, for one of its foreign subsidiaries.
• In past, the Company has experienced delays in filing statutory returns and in the timely payment of statutory fees.
• The Company requires various statutory and regulatory permits, licenses, and approvals to conduct its operations.
• The company operates in an industry that places high importance on maintaining the confidentiality of projects and their contents.
• The company relies on its relationships with production houses, film directors, and other industry participants to exploit film content.
• The Company experienced negative cash flows in the past.

 

 

IPO GMP Today

The Latest GMP of Digikore Studios SME IPO is Rs. 155. 

 

Conclusion 

Digikore Studios Limited is a prominent player in the VFX industry, serving clients both in India and overseas. The company boast of a strong portfolio and has also demonstrated substantial financial growth. Potential investors may perk their funds in the issue after carefully assessing all aspects.

 

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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