Picture Post Studios shares list at 25% premium to IPO price on NSE SME

Shares of Mumbai-based VFX and CGI service provider Picture Post Studios Ltd made a solid trading debut on Friday, August 9, with the stock listing at a 25% premium on the NSE SME platform, Emerge.

Given the fact that the minimum bidding quantity to apply for the Picture Post Studios IPO was 6,000 shares, successful applicants who were allotted shares would be sitting on a profit of at least ₹36,000 (₹6 x 6,000) as soon as trading began in the stock.

In the first 20 minutes of trade nearly 27.5 lakh shares worth ₹8.32 crore were traded on the NSE. The company’s total market capitalisation stood at ₹92.3 crore.

The SME IPO of Picture Post Studios, which was open for subscription from August 2 to August 7, had seen strong investor interest across categories. At the end of the three-day bidding period, the IPO was oversubscribed by 266.6 times, receiving bids for more than 138.5 crore shares compared to nearly 52 lakh shares on offer.

While the portion reserved for non-institutional investors (NIIs) was subscribed the most at almost 390 times, the retail investors’ quota was overbid by 308 times. The qualified institutional buyers’ (QIB) category portion was, meanwhile, oversubscribed by more than 101 times.

Picture Post Studios IPO was a 100% book-built issue that aimed to raise a total of ₹18.72 crore. The issue comprised entirely a fresh issuance of 78 lakh shares of face value of ₹1 each, with no offer-for-sale (OFS) component.

The IPO price band was fixed at ₹22 to ₹24 per share, with the minimum bid quantity of 6,000 shares and in multiples thereafter.

Ahead of the launch of the IPO, Picture Post had also raised ₹5.3 crore in its anchor round. The company had allocated a total of 22.08 lakh shares to two anchor investors – Chanakya Opportunities Fund I and Craft Emerging Market Fund PCC – at an average price of ₹24 per share.

Picture Post Studios had said that it proposed to utilize the net proceeds from the issue towards funding of capital expenditure requirements, towards the purchase of equipment and software, for repayment/prepayment of the borrowings availed by the company, and for general corporate purposes.

Incorporated in 2019, Picture Post Studios is a Mumbai-based digital studio skilled in high-end visual effects, animation, design and creative development for advertising, films and other media. It specializes in movie editing, computer-generated imagery (CGI), visual effects (VFX), video conversion, grading, and mastering films and commercials for various channels and digital platforms.

The company’s revenue in 2023-24 stood at ₹26.5 crore compared with ₹10.9 crore in 2022-23. Profit after tax (PAT) surged to ₹3.4 crore in FY24 from almost ₹60 lakh in FY23.