Thinking Hats Entertainment shares hit lower circuit after listing at 36% premium

Thinking Hats Entertainment Solutions made a robust debut on stock exchanges on Thursday as its shares listed at a premium of 36% over the issue price.

Shares of the company opened at ₹60 per share on the NSE SME platform, reflecting gains of 36% over the issue price of ₹44 per share.

Strong listing attracted profit-taking and the stock dropped by 5% to hit the lower circuit at ₹57 per share soon after making its debut.

According to exchange data, more than 9.63 lakh shares changed hands on the bourse. The traded value was ₹5.75 crore. The market valuation of the company stood at ₹71.18 crore.

Thinking Hats Entertainment raises ₹15.09 crore via IPO.

The company launched its initial public offering from September 25 to 27 to raise a total of ₹15.09 crore from public investors. The public offer comprised a fresh issue of 34.29 lakh shares and no offer-for-sale component.

The company fixed the price band at ₹42 to ₹44 per share for the book-built issue. The minimum lot size was 3000 shares and the minimum investment required was ₹132,000 for retail investors.

Mas Services Limited is the IPO registrar while Horizon Financial Pvt Ltd is the book-running lead manager.

Thinking Hats Entertainment Solutions IPO booked 322 times.

The public offer of Thinking Hats Entertainment Solutions was booked a little over 322 times riding on strong demand from retail investors.

Applications for 104.73 crore equity shares were received against 32.49 lakh shares offered across investor categories.

The Non-Institutional Investors’ category was booked 357 times. NIIs placed bids for 31.28 crore shares against 876,000 shares on offer.

The retail portion was subscribed 347.63 times. Retail investors placed applications for 71.25 crore shares against 20.49 lakh shares marked for them.

The Qualified Institutional Buyers’ category was booked 67.66 times. QIBs placed bids for 2.19 crore shares against 324,000 shares set aside for the category.

Thinking Hats to use IPO proceeds for debt repayment, capital needs

Thinking Hats Entertainment Solutions has proposed to utilise IPO proceeds of ₹2 crore for prepayment or repayment of certain loans availed by the company.

As of May 31, 2024, the company’s total outstanding borrowings from various lenders – other than loans from related parties – stood at ₹ 5.37 crore.

The company will use ₹8.4 crore for meeting working capital requirements and the rest for general corporate purposes.

Founded in 2013, Thinking Hats Entertainment Solutions provides event management services for live events, MICE (Meetings, Incentives, Conferences, and Exhibitions), and social and virtual events.

The company also offers experiential marketing and OTT content production services. It produces exclusive content for OTT platforms like Netflix, Sony Liv, Amazon, Disney+Hotstar, MX Player and Zee5, etc.

The company lists Tata Group, including Westside and Zudio, McDonalds, Goldman Sachs,and Uber among its customers. The Times of India, Network 18 Media & Investments, HT Media, Radio Mirchi and Fever Entertainment are also among its customers.