BENGALURU: India integrated media content house Shemaroo Entertainment Limited 100 per cent Book Built Initial Public Offer (IPO) opens tomorrow. The company has activities across content acquisition, value addition to content and content distribution. The issue sized Rs 120 crore, closes on 18 September 2014. The promoters of the Company are Raman Maroo and Atul Maru.
The face value of each share is Rs 10 in the price band of between Rs 155 to Rs 170. A 10 per cent discount is offered to retail investors. The minimum number of shares per lot is 85 and in multiples of 85 thereafter. The maximum bid for retail customers is Rs 2 Lakhs. The equity shares will be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Note : 100,00,000 = 100 Lakhs = 10 million = 1 crore.
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The total size of the issue is between 71 and 77 lakh shares. The break up is: Qualified Institutional Bidders (QIB) including Anchor Investors who may be allocated 60 per cent of the QIB portion is 50 per cent of the issue, non-institutional investors 15 per cent and retail investors 35 per cent of the issue size. The objects of the Offer are to fund, working capital requirements and expenditure for general corporate purposes and achieve the benefits of listing the Equity Shares on the BSE and the NSE and to carry out the sale of 22,555,124 Equity Shares by the Selling Shareholders.
Data by Karvy Stockbrokers of the company over a five year period in an IPO note says that the company’s earnings per share (EPS) has gone up by 20.4 times from Rs 0.69 (PAT Rs 1.26 crore) in FY-2010 to Rs 14.08 (PAT Rs 27.95 crore) in FY-2014. Shemaroo’s revenue has gone up 2.6 times from Rs 103.57 crore in FY-2010 to Rs 264.68 crore in FY-2014. Its net worth has gone up 2.2 times from Rs 79.27 crore in FY-2010 to Rs 177.45 crore in FY-2014. The figures released by Karvy Stockbroking indicate a PE ratio of between 11 (Price Rs 155 per share) and 12 (Price Rs 170) based on an EPS of Rs 14.08 in FY-2014.
A Shemaroo press release says:
Shemaroo’s Content Library consists of more than 2,900 titles spanning new Hindi films like Queen, Bhaag Milkha Bhaag, Dedh Ishqiya, The Dirty Picture, Kahaani, OMG: Oh My God!, Black, Ishqiya, Ajab Prem Ki Ghazab Kahani, Omkara, Dil Toh Baccha Hai, Bheja Fry 2, amongst others. Hindi films classics like Zanjeer, Beta, Dil, Disco Dancer, Mughal-e-Azam, Amar Akbar Anthony, Namak Halaal, Kaalia, Madhumati etc., titles in various other regional languages like Marathi, Gujarati, Punjabi, Bengali among others as well as non-film content.
Shemaroo is one of the largest independent content aggregators in Bollywood. Currently, the Company distributes content over which it has either complete ownership rights or limited ownership rights.
The Company distributes its content through various mediums such as (i) television such as satellite,
terrestrial and cable television; (ii)New Media platforms consisting of mobile, internet, direct to home (“DTH”) and other applications; (iii) home entertainment; and (iv) other media.
Shemaroo’s recent initiatives include tying up as an official channel partner for Google Inc.’s You Tube where it is managing 32 channels. It is also moving beyond providing just content, to providing content management solutions to partners including Reliance Communications Re 1 WAP store and Airtel digital television in connection with an interactive devotional service, namely ‘iDarshan’.
Shemaroo’s key strengths include an established brand name; vast, diverse and growing Content Library; diversified distribution platforms; de-risked business model; experienced directors and management team; and strong relationships in the industry. Shemaroo’s overall strategy is structured around its Content Library and its successful exploitation to ensure that it can be monetised through diversified platforms on a worldwide basis and designed to address predictability, scalability and sustainability, ultimately resulting in profitability.
