Picture Post Studios Limited IPO Full Details

Picture Post Studios Initial public offering is a book fabricated issue of Rs 18.72 crores. The issue is completely a new issue of 78 lakh shares.

Picture Post Studios Initial public offering opens for membership on August 2, 2024 and closes on August 6, 2024. The apportioning for the Image Post Studios Initial public offering is supposed to be concluded on Wednesday, August 7, 2024. Picture Post Studios Initial public offering will list on NSE SME with speculative posting date fixed as Friday, August 9, 2024.

Picture Post Studios Initial public offering cost band is set at ₹22 to ₹24 per share. The base parcel size for an application is 6000 Offers. The base measure of venture expected by retail financial backers is ₹144,000. The base parcel size venture for HNI is 2 parts (12,000 offers) adding up to ₹288,000.

• The organization is an imaginative and creative after creation organization work in film altering and other related administrations.
• It stamped many crease bounce in top and primary concerns for FY24, that causes a commotion and worry over its maintainability proceeding.
• No companion bunch has accompanied their entrance at such extravagant valuations.
• Little post-Initial public offering settled up value likewise demonstrates longer incubation for relocation.
• There is no mischief in avoiding this “High Gamble/Low Return” expensive bet.

Prelude:
There are many pass up a great opportunity/wrong information found in the proposition report. It gave RI at a cost of Rs. 10 for each offer (FV Re. 1), yet its effect on normal expense of securing by advertiser’s value isn’t reflected. While the organization has not given any extra offers, yet its NAV information tables are given on the said premise which is extremely astounding. (Allude P81 to P83 of the deal report. It is truly amazing with regards to how such deal reports get endorsed by the controllers? No organization in this fragment has accompanied such extravagant valuations with miserable monetary execution. Indeed, even tables given in Initial public offering promotion alludes post reward NAV information which is truly miss-driving. Why one ought to buy in such Initial public offerings, where some distortion is there in the monetary information data. FY24 super income also causes a commotion.

ABOUT Organization:
Picture Post Studios Ltd.(PPSL) is an imaginative and creative after creation Organization spend significant time in film altering, PC Produced Symbolism (“CGI”), special visualizations (“VFX”), video change, evaluating, film and Business dominating of channels and computerized stages. The Organization was laid out in the year 2019 as a Restricted Risk Organization (“LLP”) under the name and style of “Prodace Arrangements LLP”. From that point the name was changed from Prodace Arrangements LLP to Picture post Studios LLP vide Endorsement of Joining gave resulting upon name change dated August 26, 2022 which was then changed over into a Confidential Restricted Organization vide a Testament of Consolidation dated June 01, 2023.

PPSL, with a group of experts, offer many administrations to take care of the different necessities of media outlets. It is one of the enhanced visualizations Organization covering the whole range of after creation prerequisites going from computerized intermediates and special visualizations to online publications and works as a studio, spend significant time in Movies, Web series and commercials, with a solid spotlight on top of the line variety reviewing, movement plan, special visualizations, and web based altering.

It pushes imaginative limits and embrace development. Its obligation to conveying state of the art arrangements and adjust to developing innovations has pushed it to fast achievement. PPSL has some expertise in making visual encounters that enraptured crowd all over the planet. After creation is a piece of the method involved with filmmaking, video creation and photography. After creation incorporates all phases of creation happening after head photography or recording individual program fragments. Its studio has required gear, programming, and talented experts to improve the nature of the recording and rejuvenate the Chief’s vision. It guarantees that the end result fulfills industry guidelines and successfully imparts the expected message to the crowd.

By and large, after creation studios assume a fundamental part in changing crude film into a cleaned, proficient film or video project. PPSL’s administrations portfolio permits Makers, Chiefs and Movie producers to assemble customized tending to dissimilar parts of notices or movies for end watchers. As of April 30, 2024, it had 105 workers on its finance.

ISSUE Subtleties/CAPITAL HISTORY:
The organization is emerging with its lady book building course Initial public offering of 7800000 value portions of Re. 1 each to prepare Rs. 18.72 cr. at the upper cap. It has reported a value band of Rs. 22 – Rs. 24 for every offer. The issue opens for membership on August 02, 2024, and will close on August 06, 2024. The base application to be made is for 6000 offers and in products consequently, from that point. Post apportioning, offers will be recorded on NSE SME Arise. The issue comprises 26.62% of the post-Initial public offering settled up capital of the organization. From the net returns of the Initial public offering, it will use Rs. 8.04 cr. for capex on acquisition of gear and programming, Rs. 5.00 cr. for reimbursement/prepayment of specific borrowings, and the rest for general corporate purposes.

The issue is exclusively lead overseen by Shreni Offers Ltd., and Bigshare Administrations Pvt. Ltd. is the recorder to the issue. Shreni Offers Ltd. is likewise the market creator for the organization.

Having given introductory value shares at standard worth, the organization gave further value shares at a cost of Rs. 10.00 per share (in light of Re. 1 FV) in February 2024. The typical expense of procurement of offers by the advertisers is Rs. 1.00 per share.

Post-Initial public offering, organization’s ongoing settled up value capital of Rs. 2.15 cr. will stand improved to Rs. 2.93 cr. In light of the upper Initial public offering cost band, the organization is searching for a market cap of Rs. 70.32 cr.

Monetary Execution:
On the monetary execution front, for the last three fiscals, the organization has posted an all out pay/net benefit of Rs. 0.29 cr. /Rs. 0.22 cr. (FY22), Rs. 10.85 cr. /Rs. 0.60 cr. (FY23), Rs. 26.55 cr. /Rs. 3.44 cr. (FY24 – two broken periods). The unexpected lift in its top and primary concerns for pre-Initial public offering year causes a commotion and worry over its manageability going ahead.

For the last three fiscals, it has detailed a normal EPS of Rs. 1.02, and a typical RoNW of 294.82%. The issue is valued at a P/BV of 7.36 in view of its NAV of Rs. 3.26 as of Walk 31, 2024, and at a P/BV of 2.99 in light of its post-Initial public offering NAV of Rs. 8.03 per share (at the upper cap).

On the off chance that we characteristic FY24 super income to its post-Initial public offering completely weakened settled up capital, then the asking cost is at a P/E of 20.51, and in light of FY23 income, the P/E remains at 114.29. In this manner the issue shows up forcefully estimated.

For the revealed periods, the organization has posted PAT edges of 74.79% (FY22), 5.53% (FY23), 11.65% (10 July – FY24 period), 13.29% (31 Walk – FY24 period), and RoCE edges of 1495.86%, 17.20%, 13.60%, 26.75%, individually for the alluded periods.

Profit Strategy:
The organization has not announced any profits for the detailed times of the proposition record. It will take on a judicious profit strategy in light of its monetary exhibition and future possibilities.

Examination WITH Recorded Companions:
According to the proposition record, the organization has shown Ghost Computerized, Prime Concentration, Digikore Studios as their recorded companions. They are exchanging at a P/E of 22.8, NA, and 33.2 (as of July 31, 2024). In any case, they are not genuinely similar on an apple to apple premise.

Shipper BANKER’S History:
This is the 33rd command from Shreni Offers in the last three fiscals (counting the continuous one), out of the last 10 postings, 1 opened at standard and the rest all recorded with charges going from 4.88% to 141.94% on the date of posting.

End/Speculation Procedure
The organization professes to be master in VFX and CGI related administrations. It posted non-persuading super execution in a pre-Initial public offering year. However it gave RI at a cost of Rs. 11 for each offer and has no reward issue history what-so-ever, its NAV information is deceiving and missing the effect of RI at premium on obtaining cost for advertisers. In view of Super profit of FY24, the issue shows up forcefully valued. Little value level post-Initial public offering shows longer growth period. There is no damage in skirting this “High Gamble/Low Return” expensive bet.
Analyst prescribes Keep away from to the issue.

Audit By Dilip Davda on July 31, 2024

Audit Creator
DISCLAIMER: No monetary data at all distributed anyplace here ought to be understood as a proposal to trade protections, or as exhortation to do as such in any capacity at all. All matter distributed here is only for instructive and data purposes just and by no means ought to be utilized for settling on speculation choices. My audits don’t cover GMP market and administrators blueprints. Perusers should counsel a certified monetary guide prior to pursuing any real venture choices, put together the with respect to data distributed here. With passage boundaries, SEBI believes just all around informed financial backers should take part in such offers. With insane postings in the new past, SME Initial public offerings drew the consideration of financial backers in all cases and lead to diviner frenzy. Notwithstanding, as SME issues have passage obstructions and proceeded with low inclination from the broking local area, any peruser taking choices in view of any data distributed here does so altogether despite the obvious danger ahead. The above data depends on data accessible as of date combined with market insights. The Creator has no designs to put resources into this proposition.