Kerala Story, Action Replayy Producer Sunshine Pictures Files Draft Papers For IPO

Vipul Amrutlal Shah-backed film production company Sunshine Pictures Ltd. filed its preliminary papers for its initial public offering on Dec. 31. The IPO is a fresh issue of 50 lakh shares, with an offer-for-sale segment of 33.75 lakh shares. The anchor book and bidding dates of the offer are yet to be announced.

Promoters of the company include film producer and director Vipul Shah, his wife Shefali Vipul Shah, and their sons Aryaman Vipul Shah and Maurya Vipul Shah. Vipul is offloading 23.69 lakh shares, while Shefali will sell 10.06 lakh shares under the OFS portion of the IPO.

The company plans to utilise the proceeds from the fresh issue of shares to fund the working capital requirements and for general corporate purposes, as per the draft red herring prospectus.

GYR Capital Advisors Pvt. Ltd. is the banker handling the issue, while Bigshare Services Pvt. Ltd. is the main registrar.

Sunshine Pictures Business

Incorporated in year 2007, the company is a Mumbai-based production-house engaged in the business of originating, creating, developing, producing, marketing and distribution of films, TV serials and web series. They have produced and distributed films such as ‘Commando: A One-Man Army', ‘Holiday: A soldier is never off duty', ‘Force 2', ‘Commando 2: The black money trail', ‘The Kerala Story', etc.

They engage in research & development of scripts, end-to-end production of content, intellectual property creation, monetisation of rights and distribution.

Financials And Industry Peer Comparison

For the period ended Sept. 30, 2024, Sunshine Pictures clocked a net profit of Rs 4.57 crore against revenue of Rs 39.02 crore. The company's bottom-line print stood at Rs 52.45 crore for the fiscal ended March 2024, against a topline of Rs 133.8 crore. As of the abovementioned date, the company's debt pile stood at Rs 8.52 crore.

Sunshine Pictures' listed peers include Balaji Telefilms Ltd., Panorama Studios International Ltd., and Baweja Studios Ltd.

Panorama Studios has a price to earnings ratio of 7.09, with a return on net worth of 28.43% while clocking in a total income of Rs 444.23 crore. Baweja Studios has a total income of Rs 65.13 crore, with a P/E ratio of 12.42 and returns of 8.59%.

Balaji Telefilms has income of Rs 631.11 crore, with P/E of 40.57 and returns of 4.50%, while the IPO-bound production house has an income of Rs 139.46 crore with returns worth 75.26%.