Digital Entertainment IPOs in India involve companies in the online streaming, gaming, and digital media sectors offering shares to the public. These IPOs tap into the growing demand for digital entertainment, catering to a wide audience across platforms like OTT, gaming, and content creation.
Content:
- Overview of the Digital Entertainment IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in Digital Entertainment Sector IPOs
- Disadvantages of Investing in Digital Entertainment Sector IPOs
- Role of Digital Entertainment Industry in the Economy
- How to invest in Digital Entertainment IPOs?
- Future outlook of Digital Entertainment IPOs in India
- Digital Entertainment IPOs in India – FAQ
Overview of the Digital Entertainment IPOs in India
Digital Entertainment IPOs in India involve companies offering shares to the public within the digital entertainment industry. These companies provide streaming services, gaming, digital content creation, and other entertainment-related platforms, capitalizing on the growing online audience.
Investors have the opportunity to back businesses thriving in the fast-evolving digital entertainment landscape. With the rise of OTT platforms, online gaming, and content consumption through digital channels, these IPOs reflect the growing demand for digital entertainment in India, offering attractive growth potential.
IPO Fundamental Analysis
Nazara Technologies Limited
Nazara Technologies Ltd’s financial results show continued growth in FY24, with sales reaching ₹1,138 crore, up from ₹621.7 crore in FY22. Net profit improved to ₹74.75 crore in FY24 from ₹50.7 crore in FY22.
Revenue Trend: Sales increased to ₹1,138 crore in FY24, up from ₹1,091 crore in FY23 and ₹621.7 crore in FY22, reflecting a steady upward trend in revenue.
Equity and Liabilities: Equity capital grew to ₹30.62 crore in FY24 from ₹13 crore in FY22. Total liabilities increased to ₹2,762 crore in FY24, from ₹1,410 crore in FY22, due to higher current liabilities and minority interest.
Profitability: Operating profit was ₹99.61 crore in FY24, with an OPM of 8.18%, down from 14.65% in FY22. EBITDA increased to ₹179.24 crore in FY24, reflecting solid profitability despite lower OPM.
Earnings Per Share (EPS): EPS increased to ₹7.39 in FY24 from ₹5.95 in FY23 but decreased from ₹8.71 in FY22, influenced by changes in profitability and taxes.
Return on Net Worth (RoNW): RoNW for FY24 was 4.95%, showing a stable but lower return compared to prior years due to higher reserves and increased liabilities.
Financial Position: Total assets grew to ₹2,762 crore in FY24 from ₹1,410 crore in FY22, driven by a significant rise in current assets, which amounted to ₹1,898 crore in FY24.
Bodhi Tree Multimedia Ltd
Bodhi Tree Multimedia Ltd’s financial results for FY24 show growth in sales to ₹64 crore, compared to ₹59.08 crore in FY22. Net profit increased to ₹3.54 crore in FY24 from ₹2.96 crore in FY22.
Revenue Trend: Sales grew to ₹64 crore in FY24, up from ₹42.61 crore in FY23 and ₹59.08 crore in FY22, reflecting consistent growth in revenue.
Equity and Liabilities: Equity capital remained steady at ₹12.5 crore in FY24. Total liabilities rose to ₹61.7 crore from ₹21.18 crore in FY22, primarily due to higher current liabilities.
Profitability: Operating profit increased to ₹5.94 crore in FY24, with an OPM of 9.27%, up from 4.72% in FY22. EBITDA also grew to ₹6.03 crore, reflecting improved profitability.
Earnings Per Share (EPS): EPS increased to ₹2.71 in FY24, from ₹2.61 in FY23, but significantly decreased from ₹23.68 in FY22 due to changes in net profit.
Return on Net Worth (RoNW): RoNW for FY24 was 13.60%, showing a solid return on net worth, indicating efficient use of equity capital for profitability.
Financial Position: Total assets rose to ₹61.7 crore in FY24, driven by a significant increase in current assets, which amounted to ₹53.71 crore. Non-current assets increased to ₹7.99 crore.
IPO Financial Analysis
Nazara Technologies Limited
| FY 24 | FY 23 | FY 22 | |
| Sales | 1,138 | 1,091 | 621.7 |
| Expenses | 1,039 | 989.9 | 527.1 |
| Operating Profit | 99.61 | 101.1 | 94.6 |
| OPM % | 8.18 | 8.86 | 14.65 |
| Other Income | 79.63 | 49.5 | 23.6 |
| EBITDA | 179.24 | 150.6 | 118.7 |
| Interest | 6.8 | 4.7 | 0.6 |
| Depreciation | 66.99 | 57.1 | 47.7 |
| Profit Before Tax | 105.45 | 88.8 | 69.9 |
| Tax % | 13.26 | 28.6 | 27.47 |
| Net Profit | 74.75 | 61.4 | 50.7 |
| EPS | 7.39 | 5.95 | 8.71 |
*All values in ₹ Cr.
Bodhi Tree Multimedia Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 64 | 42.61 | 59.08 |
| Expenses | 58.06 | 37.49 | 56.28 |
| Operating Profit | 5.94 | 5.12 | 2.8 |
| OPM % | 9.27 | 11.96 | 4.72 |
| Other Income | 0.09 | 0.21 | 0.3 |
| EBITDA | 6.03 | 5.33 | 3.1 |
| Interest | 0.72 | 0.58 | 0.23 |
| Depreciation | 0.23 | 0.2 | 0.01 |
| Profit Before Tax | 5.09 | 4.55 | 2.86 |
| Tax % | 30.32 | 28.49 | -3.58 |
| Net Profit | 3.54 | 3.26 | 2.96 |
| EPS | 2.71 | 2.61 | 23.68 |
| Dividend Payout % | 18.45 | 19.16 | 0 |
*All values in ₹ Cr.
About the Company
Nazara Technologies Limited
Nazara Technologies Limited, founded in 1999, is a leading mobile gaming company in India, offering diverse gaming products in interactive gaming, eSports, and gamified early learning. Its reach spans emerging markets like India, Africa, and Southeast Asia.
The company operates through subscription-based gaming, freemium models, eSports, gamified learning, and real-money gaming. Flagship offerings include Kiddopia, CarromClash, World Cricket Championships, Nodwin, and Sportskeeda, with 71.03% of revenues driven by eSports and gamified learning.
Bodhi Tree Multimedia Ltd
Bodhi Tree Multimedia Ltd, established in 2013, specializes in content production for television, films, and digital platforms. It operates across three segments: Hindi General Entertainment Channels (GEC), OTT platforms, and regional language shows in Tamil, Bengali, Marathi, and Gujarati.
The company produces diverse content, including dramas, comedies, thrillers, and reality shows, with a portfolio exceeding 30 shows and 1,000+ hours of TV and OTT content. Esteemed clients include Amazon, Netflix, Star TV, Disney, and Zee.
Advantages of Investing in Digital Entertainment Sector IPOs
The main advantage of investing in Digital Entertainment Sector IPOs is the rapid growth of digital content consumption, offering strong potential returns. With a broad and expanding audience, the sector is expected to experience consistent demand, providing long-term opportunities for investors.
- Rapid growth in digital content: Digital entertainment is witnessing fast growth, fueled by increasing internet penetration, making it an attractive sector for investors looking for expansion opportunities in a highly dynamic market.
- Strong consumer demand: The increasing consumption of digital media, such as streaming platforms and gaming, ensures a large, steady customer base, driving profitability and growth prospects for companies in this sector.
- Innovation-driven growth: Companies in the digital entertainment sector are at the forefront of technological innovation, allowing them to leverage emerging trends such as virtual reality and interactive media to stay competitive and grow their market share.
- Potential for long-term profits: With evolving content delivery methods and expanding subscriber bases, companies in the digital entertainment sector can generate consistent revenues, making them attractive for investors seeking long-term profits and capital appreciation.
Disadvantages of Investing in Digital Entertainment Sector IPOs
The main disadvantage of investing in Digital Entertainment Sector IPOs is the volatility in market trends, along with high competition and uncertain regulatory challenges. These factors can negatively impact growth and profitability, creating risks for investors seeking stable returns.
- Market volatility: The digital entertainment sector can experience rapid shifts in consumer preferences, causing unpredictable fluctuations in stock prices, which can lead to potential losses for investors, especially those looking for short-term gains.
- Intense competition: Numerous players in the sector lead to fierce competition. This can affect a company’s market share and pricing power, diminishing growth potential and impacting overall profitability in the long run.
- Regulatory challenges: The digital entertainment industry faces strict government regulations, including content restrictions and censorship. Changes in policy can disrupt operations and affect revenues, leading to uncertainty for investors.
- High customer acquisition costs: Digital entertainment companies often incur significant costs in acquiring and retaining customers, such as marketing expenses and content development. These costs can squeeze margins, making it challenging to achieve profitability, especially in the early stages.
Role of Digital Entertainment Industry in the Economy
The digital entertainment industry plays a significant role in the economy by driving innovation and creating new revenue streams. It supports a wide range of sectors, including technology, content creation, advertising, and media, contributing to economic growth and job creation.
As consumer demand for digital content rises, the industry fosters global connectivity and expands market opportunities. It also boosts ancillary industries, such as data analytics, software development, and online marketing, creating a ripple effect that positively impacts various segments of the economy.
How to invest in Digital Entertainment IPOs?
To invest in Digital Entertainment IPOs, follow these steps:
- Open a Demat and Trading Account: Choose a brokerage platform like Alice Blue.
- Research IPO Details: Review the company’s prospectus, pricing, and performance.
- Place Your Bid: Log in to the brokerage account, select the IPO, and bid as per your preferences.
- Monitor and Confirm Allocation: If allocated, your shares will be credited to your Demat account after listing.
Future outlook of Digital Entertainment IPOs in India
The future outlook for digital entertainment IPOs in India is promising, as the growing demand for online content, streaming services, and gaming creates opportunities for new entrants. The sector is expected to attract significant investments, driving the IPO market’s growth.
As digital platforms evolve, IPOs in this sector are poised to benefit from India’s expanding internet penetration and a tech-savvy audience. Investors are likely to see a surge in high-growth companies aiming to tap into the growing digital entertainment market, making it an attractive investment.
Digital Entertainment IPOs in India – FAQ
A Digital Entertainment IPO is an initial public offering by companies in the digital entertainment industry, such as streaming platforms, gaming companies, and digital content providers. It allows investors to buy shares and gain exposure to the sector’s growth potential.
Major digital entertainment companies in India that have launched IPOs include Nazara Technologies Limited, a prominent mobile gaming and esports company, and Bodhi Tree Multimedia Ltd, which focuses on content creation and digital streaming services for the growing entertainment market.
Digital entertainment IPOs signify the growth potential of India’s online entertainment sector. They provide investment opportunities in gaming, streaming, and digital content, offering exposure to the rapidly expanding digital entertainment market, which has become a key economic driver.
The largest digital entertainment IPO in India is Nazara Technologies Limited’s IPO, which raised significant capital. It marked a milestone for India’s mobile gaming sector, attracting global investors due to the increasing popularity of mobile gaming and esports.
To invest in digital entertainment IPOs, you need a brokerage account with a platform like Alice Blue. Through this platform, you can participate in the IPO, place bids, and track your investments for potential returns in the digital entertainment market.
Digital entertainment IPOs can be suitable for long-term investment due to the growing digital market in India. As more consumers embrace online gaming, streaming, and content consumption, companies in this sector may see sustained growth, making them appealing for long-term investors.
Digital entertainment IPOs have the potential to be profitable, but they come with risks. Companies in this sector benefit from increasing demand for online content and gaming. However, market volatility and competition can impact profitability, so careful analysis is required.
Yes, there are upcoming digital entertainment IPOs in India. With the growing demand for digital content, gaming, and OTT platforms, more companies are expected to go public, offering fresh opportunities for investors interested in the entertainment and media sectors.
You can find detailed reviews and analysis of digital entertainment IPOs on brokerage platforms like Alice Blue, financial news websites, and investment analysis blogs. These sources provide insights, reports, and expert opinions to help you make informed investment decisions.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
