Sunshine Pictures IPO: The initial public offering (IPO) of film production house Sunshine Pictures Ltd enters its third and the last day today amid strong investor interest.
The bidding for the Sunshine Pictures IPO opened for subscription on Tuesday, August 18, and closes on Thursday, August 20. The IPO allotment date is likely August 21, and the IPO listing date is August 25. Sunshine Pictures IPO shares will be listed on BSE and NSE.
Sunshine Pictures IPO price band has been set at Rs 342 to Rs 360 per share, and the IPO lot size is 41 shares. At the upper-end of the price band, the company aims to raise Rs 282.14 crore from the public issue, which is a combination of fresh issue of 48 lakh equity shares worth Rs 172.80 crore, and an offer for sale (OFS) of 30.37 lakh shares aggregating to Rs 109.34 crore.
The company had already raised Rs 84.64 crore from anchor investors on August 17.
It proposes to utilise the net issue proceeds towards funding the working capital requirements.
GYR Capital Advisors Pvt. Ltd. is the book running lead manager and Bigshare Services Pvt. Ltd. is the registrar of the Sunshine Pictures IPO.
Sunshine Pictures IPO Subscription Status
Sunshine Pictures IPO has been subscribed 18.46 times so far on, according to NSE data at the end of August 19, the second day of the bidding period.
The public issue is booked 21.59 times in the Retail Individual Investors category, and 35.59 times in the Non-Institutional Investors (NII) segment. The Qualified Institutional Buyers (QIB) category received 14% subscription so far.
Sunshine Pictures IPO GMP
The trend for Sunshine Pictures shares remains strong in the unlisted market, with a decent grey market premium (GMP). According to analysts, Sunshine Pictures IPO GMP today is Rs 77 per share. This means that in the grey market, Sunshine Pictures shares trading higher by Rs 77 apiece than their IPO price.
Considering the Sunshine Pictures IPO GMP today, the estimated listing price of the stock would be Rs 437 apiece, which is at 21.39% premium to the issue price of Rs 360 per share.
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Sunshine Pictures IPO: Should you apply?
Sunshine Pictures is engaged in the business of production and distribution of films, web series and TV serials. Historically, the company has recorded negative Revenue, EBITDA and PAT CAGR of 25.4%, 8.6% and 13.4%, respectively, over the FY24-FY26 period, given the high uncertainty of project success and working capital requirements.
“While the company possesses a list of upcoming projects, the success of the same depends on audience acceptance and box office performance. At the upper price band of Rs 360, the issue is valued at FY26 P/E multiple of 27.8x based on post-issue capital,” SBI Securities said.
The brokerage firm recommends investors to avoid the Sunshine Pictures IPO.
Sunshine Pictures’ EBITDA margin surged 2,953 bps to 78.65% in FY26 despite a 27.96% revenue decline.
Swastika Investmart noted that this sharp improvement was mainly due to production costs of unreleased projects being capitalized as inventory, rather than a genuine improvement in operational efficiency.
“Concurrently, Cash Flow from Operations (CFO) collapsed to −Rs 3,320.63 lakhs, revealing severe working capital lock-up and non-cash-backed P&L profits. Relative to pure-play listed media peers the operational return ratios (RoCE > 35%) and low leverage justify a slight premium. However, the valuation leaves limited margin of safety if content releases face production delays or subdued viewer traction,” said the brokerage firm.
Suitable primarily as a high-risk, tactical exposure for investors looking to participate in content creation and IP monetization plays, provided they can stomach significant quarter-to-quarter earnings volatility, it added.
The brokerage firm has a ‘Neutral’ rating on Sunshine Pictures IPO.
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