Thinking Hats Entertainment Solutions IPO: Key Details, Price Band ₹42 to ₹44 Per Share

Incorporated in February 2013, Thinking Hats Entertainment Solutions Limited specializes in concept development, event design, and production for live events, corporate functions, MICE, social and virtual events, as well as OTT content production and experiential marketing. The company focuses on content development, intellectual property curation, and tech-centric product development. They produce exclusive content for major OTT platforms and have created web series, movies, and short films. The company's clients include prominent corporate brands and media companies. As of September 2024, the Company had 35 employees on payroll.

The Objectives of the Issue

Thinking Hats Entertainment Solutions Limited intends to utilise the Net Proceeds from the Issue towards the following objectives:

1. Prepayment or repayment of all or a portion of certain loans availed by the Company
2. Funding of working capital requirements of our Company
3. General Corporate Purposes

Highlights of Thinking Hats Entertainment Solutions IPO

Thinking Hats Entertainment Solutions IPO is set to launch with a book-built issue of ₹15.09 crores. The issue is entirely fresh. Here are the key details of the IPO:

• The IPO opens for subscription on 25th September 2024 and closes on 27th September 2024.
• The allotment is expected to be finalised on 30th September 2024.
• Refunds will be initiated on 1st October 2024.
• Credit of shares to Demat accounts is also expected on 1st October 2024.
• The company will tentatively list on NSE SME on 3rd October 2024.
• The price band is set at ₹42 to ₹44 per share.
• The fresh issue comprises 34.29 lakh shares, aggregating to ₹15.09 crores.
• The minimum lot size for the application is 3000 shares.
• Retail investors need to invest a minimum of ₹132,000.
• The minimum investment for HNI is 2 lots (6,000 shares), amounting to ₹264,000.
• Horizon Financial Pvt Ltd is the book running lead manager for the IPO.
• Mas Services Limited serves as the registrar.
• Giriraj Stock Broking is the market maker for the IPO.

Thinking Hats Entertainment Solutions IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 27th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Thinking Hats Entertainment IPO Issue Details/Capital History

The Thinking Hats Entertainment Solutions IPO is scheduled from 25th September to 27th September 2024, with a price band of ₹42 to ₹44 per share and a face value of ₹10. The total issue size is 34,29,000 shares, raising up to ₹15.09 crores through a fresh issue. The IPO will be listed on NSE SME. The pre-issue shareholding is 90,58,150 shares.

Thinking Hats Entertainment IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 3000 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Thinking Hats Entertainment Solutions Ltd

Strengths:

• Talented team with a successful track record in event management and content creation
• Established connections with clients and key figures in the entertainment industry
• Strong brand recognition in event management and retail visual merchandising
• Diverse portfolio of services including live events and OTT content production

Weaknesses:

• Relatively small team size which may limit scalability
• Dependence on key personnel for creative output

Opportunities:

• Growing demand for OTT content and experiential marketing
• Potential for expansion into new markets and service offerings
• Increasing corporate spending on events and marketing

Threats:

• Intense competition in the entertainment and event management industry
• Rapid changes in technology and consumer preferences
• Economic downturns affecting corporate spending on events and marketing

Financial Highlights: Thinking Hats Entertainment Solutions Ltd

Below are the financial results for the Fiscal years FY24, FY23, and FY22:

Thinking Hats Entertainment Solutions Limited has shown significant growth in recent years. The company's revenue increased by 20%, and profit after tax (PAT) rose by 54% between the financial year ending on 31st March 2024 and 31st March 2023.

Assets have shown substantial growth, increasing from ₹641.14 lakhs in FY22 to ₹2,403.22 lakhs in FY24, representing a growth of about 274.8% over two years.

Revenue has seen strong growth, rising from ₹1,245.2 lakhs in FY22 to ₹2,670.1 lakhs in FY24, marking an impressive increase of 114.4% over two years.

The company's profitability has improved significantly. Profit After Tax increased from ₹37.21 lakhs in FY22 to ₹309.16 lakhs in FY24, representing a substantial growth of 731% over two years.

Net Worth has shown strong growth, increasing from ₹372.47 lakhs in FY22 to ₹1,099.86 lakhs in FY24, a growth of about 195.3% over two years.

Total Borrowings have increased from ₹29.22 lakhs in FY22 to ₹543.46 lakhs in FY24, which represents a significant increase. This increase in borrowings, coupled with growing assets and revenue, suggests that the company is in an expansion phase.

The company's financial performance shows a trend of strong revenue growth and significantly improving profitability. The substantial increase in Net Worth indicates a strengthening financial position. However, the significant increase in borrowings should be considered in light of the company's growth strategy. Investors should evaluate these financial trends along with the company's market position and future growth prospects when considering the IPO.