Picture Post Studios Ltd IPO: Review, valuation, Date & GMP

Picture Post Studios Limited IPO - Complete Overview

Picture Post Studios Limited IPO an SME IPO is a book-built issue of Rs.18.72 crore by Picture Post Studios Limited that was founded in 2019. It is a company that specializes in video conversion, grading, mastering, computer-generated imagery (CGI), visual effects (VFX), and movie editing for a range of channels and digital platforms.

The business provides the entertainment sector with a broad range of services. It focuses on post-production, color grading, motion design, visual effects, and producing visually stunning content for people throughout the world. The following services are provided by the business:

• Services for Offline Editing

• Imagery produced by computers (CGI)

• Proficiency and quality assurance.

• Visual Effects (VFX) Grading of Color.

• Creative Editoria.

They offer a broad variety of visual effects services. The artists employ hardware, software, and unique technologies to produce amazing visual effects for Web series, commercials, music videos, and other projects under the supervision of the production team, and films.

The company plans to launch its SME IPO on August 2, 2024. 

 

Picture Post Studios Limited IPO Overview

The Rs.18.72 crore Picture Post Studios IPO consists of a fully fresh issue of 78 lac Shares, of which 33.31% are allotted to retail investors, 19% to institutional investors, and 14.31% to non-institutional investors, and the remaining to others.

This SME IPO is available for purchase from August 2 - August 6, 2024. The expected listing date on Friday, August 9, 2024, on NSE and SME. Share price between Rs.22 to Rs.24.

To open a Demat Account and apply for the IPO, Click Here.

Company Financial

The company's profit after tax (PAT) climbed by 472.89%, while revenue increased by 144.6% over the fiscal years ending 31 March 2024, and 31 March 2023.

Below is the synopsis of the company's financial data for the period between 31 March 2024, and 31 March 2023.

• The total revenue of the company is Rs.2,654.74 lac.

• The net worth of the company is Rs.858.89 lac.

• The company's EBITDA is Rs.520.41lac.

• The total assets of the company are Rs.2,832.99 lac.
  
  

(Amount in Lac)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	2,832.99	843.80	1.95
Total Revenue	2,654.74	1,085.35	29.00
PAT	343.56	59.97	21.69
Net Worth	858.89	113.01	1.45
Reserve & Surplus	485.01	-	-
Borrowing	817.69	273.40	-

 

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in Lac)

Net Cash Flow In Multiple Activities	31 Mar 2024	10 Jul 2023	FY 2023
Net Cash Flow Operating Activities	119.75	115.39	-23.22
Net Cash Flow Investing Activities	-693.21	-92.68	-287.08
Net Cash Flow Financing Activities	569.36	-23.52	319.57

 

Service-wise Revenue Breakdown

(Amount in Lac)

Particular	Jul 11, 2023 to Mar 31, 2024	Jul 10, 2023	FY 2023
Commercial Ads	2,129.67	539.19	968.64
From Domestic	68.18	18.51	-
Total	2,197.85	557.71	968.64

 

Geography-wise Revenue Breakdown of Services

(Amount in Lac)

Location	Jul 11, 2023 to Mar 31, 2024	Jul 10, 2023	FY 2023
Khar	2,129.67	539.19	968.64
Andheri	68.18	18.51	-
Total	2,197.85	557.71	968.64

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Financing the company's capital expenditure needs for the acquisition of software and equipment.

• Payback or early repayment of all or a portion of the loans we obtained from the business.

• General Corporate Purposes.

 

Peers of Picture Post Studios Limited

(Figures as of 31 Mar 2024)

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Phantom Digital Effects Limited	10	15.97	25.23
Prime Focus Ltd.	1	-0.82	-171.59
Digikore Studios Limited	10	34.09	14.46

 

Evaluation

The price of this IPO is Rs.22 to Rs.24 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 March 2024, with an EPS of Rs.1.81 from the last year, the resulting P/E ratio is 13.25x.

Considering the weighted EPS of Rs.1.02 for the last three years, the P/E ratio is 23.52x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is -73.18x.

Particulars	P/E Ratio (x)
Highest	25.23
Lowest	-171.59
Average	-73.18

Since the P/E ratio of the industry (-73.18) is negative, hence on this basis we can not predict if the company has overvaluation or undervaluation. 

 

IPO's Strengths

• Having enlisted as trusted partners in the Trusted Partner Network (TPN).

• Establishing strong ties with notable clients.

• Introducing innovative approaches.

• Exclusive technological infrastructure that guarantees scalability.

• The growing use of visual effects VFX is being used more often in a variety of sectors, including web series, television, and movies.

• Capability to draw in new talent, guide students, and make use of online networks and resources.

 

IPO’s Weaknesses

• Its investment in costly gear, software, and personnel may result in a large financial burden.

• The quality of its projects and connections with clients may suffer if the company loses important team members.

• VFX projects need a significant amount of time and labor, which may result in burnout and employee turnover.

• It can be difficult and expensive to constantly upgrade technology and expertise in order to remain competitive.

• The existence of well-established studios, recent arrivals, and freelancers competing for assignments and customers.

• Trade disputes or economic downturns may have an effect on customer spending plans and studio finances.

• To be competitive, it must constantly invest in new gear, software, and personnel training.
  
  

IPO GMP Today

Picture Post Studios Limited IPO’s latest GMP is Rs.6.

Picture Post Studios Limited IPO Timetable (Tentative)

The IPO is scheduled from August 2 to August 6, 2024, with allotment on August 7, refund initiation on August 8, and listing on August 9, 2024.

Events	Date
IPO Opening Date	August 2, 2024
IPO Closing Date	August 6, 2024
IPO Allotment Date	August 7, 2024
Refund Initiation	August 8, 2024
IPO Listing Date	August 9, 2024

 

Picture Post Studios Limited IPO Details 

The IPO with a Face Value of Rs.1 per Share is set to start on August 2, 2024 close on August 6, 2024, and offer a total issue size of 7,800,000 Shares (aggregating up to Rs.18.72 Cr) comprising a whole fresh issue size of 7,800,000 Shares (totaling up to Rs.18.72 Cr).

IPO Opening & Closing Date	August 2, 2024 to August 6, 2024
Face Value	Rs.1 per Share
Issue Price	Rs.22 to Rs.24
Lot Size	6000 Shares
Issue Size	7,800,000 Shares (totaling up to Rs.18.72 Cr).
Offer for Sale	NA.
Fresh Issue	7,800,000 Shares (totaling up to Rs.18.72 Cr).
Listing at	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

Picture Post Studios Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (6000 Shares) amounting to Rs.144000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (12000 Shares) amounting to Rs.288000.

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

 

Picture Post Studios Limited IPO Reservation

Institutional Portion	19%
Retail Portion	33.31%
Non-Institutional Portion	14.31%
Others’ Share	33.38%

 

 

Promoters And Management Of Picture Post Studios Limited IPO

• Mr. Parish Tekriwal.

• Mr. Shailendra Ishwardas Chandgotia.

• Ms. Pooja Shailendra Chandgothia.

• Ms. Deepa Shailendra Chandgothia.

Pre-Issue Promoter Shareholding	93.02%
Post-Issue Promoter Shareholding	68.27%

 

Picture Post Studios Limited IPO Lead Managers

• Shreni Shares Limited.
  
  

Dividend Policy

The company has not declared dividends in any financial year.

 

Conclusion

The company has experienced negative cash flow in operating, financing, and investing activities throughout the last few fiscal years. To achieve its goals, the company is currently launching an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable data about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

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.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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