What You Must Know About Picturepost Studios IPO: Price Band ₹22 to ₹24 Per Share

About Picturepost Studios Limited

Picturepost Studios Limited, incorporated in 2019, is a creative post-production company specialising in film editing, CGI, visual effects, video conversion, grading, and film and commercial mastering for channels and digital platforms. The company began as Prodace Solutions LLP and underwent several transitions before becoming Picturepost Studios Limited in June 2023. Led by promoters Mr. Parish Tekriwal, Mr. Shailendra Ishwardas Chandgotia, Ms. Pooja Shailendra Chandgothia, and Ms. Deepa Shailendra Chandgothia, the company offers a wide range of services to meet the diverse needs of the entertainment industry.

Picturepost Studios boasts a team of professionals covering the entire spectrum of post-production requirements. They specialise in high-end colour grading, motion design, visual effects, and online editing for films, web series, and advertisements. The company's commitment to innovation and cutting-edge solutions has driven its rapid success in the industry.

Highlights of the Picturepost Studios IPO

Picturepost Studios Limited is launching its IPO on the National Stock Exchange (NSE) SME segment. Here are the key details of the IPO:

• The issue opens for subscription on August 2, 2024, and closes on August 6, 2024. Picturepost Studios IPO shares have a face value of ₹1 per share. The price band for this book-built issue is set at ₹22 to ₹24 per share.
• The IPO consists only of a fresh issue component, with no offer for sale (OFS) portion. The company will issue a total of 78,00,000 shares (78 lakh shares), which, at the upper price band of ₹24 per share, aggregates to a fresh fundraising of ₹18.72 crore.
• As there is no OFS portion, the fresh issue size is also the overall IPO size. The issue includes a market-making portion with an allocation of 3,96,000 shares. Shreni Shares will serve as the market maker for the issue, providing two-way quotes to ensure liquidity post-listing.
• Mr Parish Tekriwal, Mr Shailendra Ishwardas Chandgotia, Ms Pooja Shailendra Chandgothia, and Ms Deepa Shailendra Chandgothia promote the company. The promoter holding in the company currently stands at 93.02%. After the fresh IPO shares issue, the promoter equity holding will be diluted to 68.27%.
• The company will use the funds raised from the fresh issue for working capital requirements and general corporate purposes. Shreni Shares Limited is the lead manager to the issue, and Bigshare Services Pvt Ltd is the registrar. Shreni Shares will also act as the market maker for the issue.

Picturepost Studios IPO: Key Dates

IPO Allocation & Minimum Investment Lot Size

Picturepost Studios IPO has announced the market maker allocation at 3,96,000 shares as inventory for market making. Shreni Shares will serve as the market maker for the IPO. The breakdown of the overall IPO allocation to various categories is as follows:

The table below shows the break-up of lot sizes for different categories:

Financial Highlights: Picturepost Studios Limited

The table below presents the key financials of Picturepost Studios IPO for recent periods:

Source: NSE: Picturepost Studios Limited DRHP

Picturepost Studios has seen impressive revenue growth, jumping from ₹29 Lakhs in FY2022 to ₹2,198 Lakhs for July 11, 2023, to March 31, 2024. EBITDA has risen from ₹22 Lakhs in FY2022 to ₹520 Lakhs recently, though the EBITDA margin has fluctuated from 74.79% in FY2022 to 23.68% now. Profit After Tax (PAT) grew from ₹22 Lakhs in FY2022 to ₹292 Lakhs recently, with an improved PAT margin of 13.29%. Return on Equity (ROE) has improved from a negative value in FY2022 to 68.03% recently, while Return on Capital Employed (ROCE) decreased but remains healthy at 26.75%. The Debt-Equity ratio improved significantly from 2.42 to 0.79, reflecting lower financial risk. However, the Current Ratio decreased from 1.25 to 0.80, which may impact short-term liquidity. Overall, Picturepost Studios shows strong growth and financial stability, but some fluctuations in metrics and the decreased Current Ratio should be monitored.