Baweja Studios’ initial public offering (IPO) in the SME segment opened for subscription on January 29 and will close on February 1. However, investor response on the first day has been lukewarm.
As of 3:00 pm, Baweja Studios IPO has garnered a 21% subscription rate, with bids for 10.27 lakh equity shares out of the 47.85 lakh shares offered. In specific categories, the IPO has been subscribed 0.35 times in the retail category and 0.10 times among Non-Institutional Investors (NII).
The IPO size is ₹97.20 crore, comprising a fresh issue of 40 lakh equity shares (₹72 crore) and an offer for sale (OFS) of 14 lakh shares (₹25.20 crore). The price band is set at ₹170 to ₹180 per share, with a lot size of 800 shares and a minimum investment of ₹144,000 for retail investors.
The IPO’s allocation is reserved as follows: up to 50% for qualified institutional buyers (QIBs), at least 15% for non-institutional investors (NIIs), and a minimum of 35% for retail investors.
The allocation for Baweja Studios’ IPO is expected on Friday, February 2, with shares scheduled to be listed on NSE SME on February 6.
Baweja Studios Limited IPO – Fundamental Analysis
Baweja Studios’ IPO presents a mixed financial picture. While revenue shows robust growth, expenses have soared, impacting profitability. RoNW declined, suggesting efficiency concerns. EPS fluctuated, but NAV per share surged. Total assets increased with manageable liabilities. Consider potential risks before investing.
Revenue
There is a consistent and significant increase in revenue over the three years, from ₹1,944.54 lakhs in 2021 to ₹7,379.05 lakhs in 2023. This indicates a strong growth trajectory.
Expenses
The expenses for Baweja Studios were ₹796.43 lakhs as of 31 March 2021, significantly increasing to ₹3,688.00 lakhs as of 31 March 2022 and further rising to ₹6,558.74 lakhs as of 31 March 2023.
Profit and Loss After Tax
The profit and loss after tax for the company was ₹764.60 lakhs as of 31 March 2021. It experienced a dip to ₹275.94 lakhs as of 31 March 2022 but then rebounded to ₹796.91 lakhs as of 31 March 2023.
Return on Net Worth (RoNW)
There’s a substantial decrease from 170.62% in 2021 to 40.12% in 2023. While still positive, this decline could indicate that the company’s efficiency in generating profits from shareholders’ equity is decreasing.
Earnings Per Share (EPS)
The diluted earnings per share (EPS) for Baweja Studios were ₹7.82 in 2021, decreased to ₹2.82 in 2022, and then increased to ₹7.83 in 2023.
Net Asset Value (NAV) per Equity Share
The net asset value (NAV) per equity share stood at ₹4.59 as of 31 March 2021, increased to ₹7.41 as of 31 March 2022, and further rose to ₹19.51 as of 31 March 2023.
Total Assets and Liabilities
The total assets of the company were ₹3,223.67 lakhs as of 31 March 2021, which decreased slightly to ₹3,056.03 lakhs as of 31 March 2022, and then increased to ₹4,489.98 lakhs as of 31 March 2023. On the other hand, total liabilities were ₹2,775.55 lakhs as of 31 March 2021, decreased to ₹2,331.95 lakhs as of 31 March 2022, and slightly increased to ₹2,503.69 lakhs as of 31 March 2023.
Baweja Studios IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue(₹in lakhs) | 1,944.54 | 4,071.02 | 7,379.05 |
| Equity(₹ in lakhs) | 448.13 | 724.07 | 1,986.28 |
| Expenses (₹in lakhs) | 796.43 | 3,688.00 | 6,558.74 |
| Profit and Loss After Tax (₹ in lakhs) | 764.60 | 275.94 | 796.91 |
| RoNW (%) | 170.62 | 38.11 | 40.12 |
| Diluted EPS only (₹) | 7.82 | 2.82 | 7.83 |
| NAV per Equity Share (₹) | 4.59 | 7.41 | 19.51 |
| Total Assets (in lakhs) | 3,223.67 | 3,056.03 | 4,489.98 |
| Total Liabilities (in lakhs) | 2,775.55 | 2,331.95 | 2,503.69 |
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Baweja Studios Ltd IPO Risks and Challenges
Baweja Studios’ risks include relying on diverse content distribution and emphasizing relationships. Uncertainty in future content access and customer collections, coupled with intense competition in Indian film distribution, poses risks to film success and revenue streams.
- Revenue generation relies on content distribution through diverse channels, making content acquisition integral. Success hinges on fostering and establishing relationships with industry players. Although past relationships have been beneficial, there needs to be more certainty about maintaining access to content through these means.
- Their business relies on film content exploitation through agreements with various channels. Maintaining and establishing relationships is crucial. Despite a focus on film production, exposure to customer collection issues may impact the recovery of outstanding dues.
- Intense competition in Indian film distribution channels, particularly during peak release periods, poses a risk to the success of their films. Growing entertainment options and technological advances may impact audience demand, potentially affecting revenue streams and overall business outcomes.
