Thinking Hats Entertainment Solutions IPO: Review, details & Date

ThinkingHats Entertainment Solutions IPO-Complete Overview

Thinking Hats Entertainment Solutions IPO an SME IPO is a book-built issue of Rs.15.09 crore by Thinking Hats Entertainment Solutions Limited, established in February 2013. With an emphasis on content development, intellectual property curation, and tech-centric product development, and specializes in concept development, event design, and production for live events, corporate functions, MICE, social, and virtual events, it also produces OTT content and engages in experiential marketing.

The company produces original content for over-the-top (OTT) platforms, including Voot, Zee5, Disney+Hotstar, MX Player, Netflix, Amazon, and Sony Liv.

The business has made one Bengali film, "Onek Diner Pore," as well as two web series, "Aapkey Kamrey Me Koi Rehta Hai" and "Kathmandu Connection 2," for OTT platforms. We produce short films for YouTube content, corporate event movies, and OTT web series in addition to movies.

Media companies such as The Times of India, HT Media, Network 18 Media & Investments, Radio Mirchi, and Fever Entertainment are among the clients of the company, along with the Tata Group, which includes Westside and Zudio, Goldman Sachs, McDonald's, and Uber.

This new SME IPO is to be launched on 25 September 2024, and its ‘initial public offering’ will end on 27 September 2024. 

 

Thinking Hats Entertainment Solutions IPO Overview

The Rs.15.09 crore Thinking Hats Entertainment Solutions IPO is an entirely fresh issue of 34.29 lac Shares. 

This SME IPO date is from September 25-September 27, 2024. Thinking Hats Entertainment Solutions Ltd IPO price is Rs.42 to Rs.44 for each Share. The expected IPO listing date is on Thursday, 03 October 2024, and listing at NSE and SME.

To open a demat account and apply for the IPO, Click Here.

 

Company Financial

The company’s revenue was increased by 20% and PAT grew by 54% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Geographical-wise Revenue Breakdown 

(Amount in lac)

 

Segment-wise Export Revenue Breakdown During The Last Three Fiscals

(Amount in lac)

 

International Sales Revenue Breakdown During The Last Three Fiscals

(Amount in lac)

 

The Objective of The Issue

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

• Funding the company's needs for working cash

• Repayment in full or in part of some outstanding loans taken out by the company

• General corporate purposes.

 

Peers of Thinking Hats Entertainment Solutions Ltd.

 

Note:-

The basic EPS of the peers is for the financial year ending 31 March 2024.

 

Evaluation

The IPO price is Rs.42 to Rs.44 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.3.57 from the last year, the resulting P/E ratio is 12.32x.

Considering the weighted EPS of Rs.2.63 for the last three years, the P/E ratio is 16.73x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 16x.

In simple words, the P/E ratio of Thinking Hats Entertainment IPO (12.32x), compared with the industry’s average P/E of 16x, has an undervaluation (on a P/E Ratio basis only). Hence the price of the Share seems fairly (fully) priced for the investors when considered based on the average P/E ratio of the industry. 

 

 IPO's Strengths 

• A gifted group with a proven track record in content creation and event management

• Cultivated relationships with customers and influential people in the entertainment sector

• High level of brand awareness in retail visual merchandising and event management

• A wide range of services, such as live events and the creation of OTT content

 

IPO’s Weaknesses

• Small team size, which could prevent it from growing

• Reliance on important individuals for innovative output

• Fierce rivalry in the event planning and entertainment sectors

• Rapid shifts in consumer preferences and technology

• The impact of economic downturns on corporate marketing and event spending.

 

Thinking Hats Entertainment Solutions IPO GMP Today

Thinking Hats Entertainment Solutions IPO GMP is Rs.25 as of 24 September 2024. With a price of Rs.44, the estimated IPO listing price is Rs.69 at the time of writing this information.

IPO Timetable (Tentative)

The IPO date is from September 25 to September 27, 2024, with allotment on September 30, refund initiation on October 01, and listing on October 03, 2024.

 

Thinking Hats Entertainment Solutions IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 3,429,000 Shares (Rs.15.09 Cr).

Thinking Hats Entertainment Solutions IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (3000 Shares) amounting to Rs.1,32,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (6000 Shares) amounting to Rs.2,64,000.

 

Thinking Hats Entertainment Solutions IPO Reservation (% of Net Issue)

 

Promoters And Management of Thinking Hats Entertainment Solutions Ltd.

• Rajesh Bhardwaj

• Gaurav Singhania

• Shruti Singhania.
  
  

IPO Lead Managers

• Horizon Financial Pvt Ltd.
  
  

Dividend Policy

The company hasn’t paid any dividends in the last three FYs.

 

Conclusion

The company's activities include corporate MICE, social and virtual events, event design, and production. Both its top and bottom lines showed an increase during the reporting periods. FY24 earnings suggest that the issue is priced aggressively. It competes in a crowded and very competitive market. It has faced negative cash flows from various activities in some of the previous fiscal years. Thinking Hats IPO is showing a 56.82% gain or loss in its listing price in the grey market. Hope this blog helped you with the information you were seeking.

 

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: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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