Digikore Studios IPO Detail 2023
Introduction
The Digikore Studios IPO will open on September 25 and close on September 27, 2023. As per the DRHP filed with SEBI, the company intends to raise approximately ₹ 30.48 crore through this public offering, consisting of 17.82 lakh shares with a face value of ₹ 10 each, which will be issued at a price of ₹ 168 to ₹ 171 per share.
Digikore Studios Limited (“the Company”)
Digikore Studios Limited was incorporated in 2005. Digikore serves as a hub for top-tier industry talent. Having a production facility in India, these specialize in delivering visual effects (VFX) for a diverse range of projects such as films, web series, TV series, documentaries, and commercials, all while maintaining a strong emphasis on cost-effectiveness. Its reputation as a world-class VFX studio is a result of its harmonious blend of imaginative creativity and cutting-edge technology.
In its initial years, Digikore made its mark in the realm of animation and visual effects (VFX). Worked with an extensive portfolio of many films and TV series, notable works include projects like “Thor: Love and Thunder,” “Black Panther: Wakanda Forever,” “Glass Onion: A Knives Out Mystery,” “Deadpool,” “Star Trek,” “Jumanji,” “Stranger Things,” “The Last Ship,” “Titanic,” “Gosht Rider: Spirit of Vengeance,” “Transformer: Age of Extinction,” “Crouching Tiger, Hidden Dragon: Sword of Destiny,” and many more prestigious productions.
As a TPN-audited VFX studio, it offers a comprehensive suite of visual effects services, overseen by its experienced production team. Its artists harness the power of the latest software, hardware, and proprietary tools to produce exceptional VFX for some of the most prominent films, web series, and TV series.
Company Key Metrics
| Earning Per Share (EPS) | ₹ 36.95 per Equity Share |
| Debt to Equity Ratio | 1.03 |
| ROE | 74.03% |
| ROCE | 92.23% |
| Return on Net Worth (RoNW) | 74.03% |
Objects of the Issue,
- Funding Working Capital requirements,
- General Corporate Purposes, and
- Offer Expenses.
Financial Highlights (Restated)
| Particulars | Period ended on 30th June 2023 | FY 2022-23 | FY 2021-22 | FY 2020-21 |
|---|---|---|---|---|
| Net Worth | 870.59 | 542.66 | 153.48 | 106.94 |
| Total Assets | 1,932.42 | 825.18 | ||
| Reserve & Surplus | 752.19 | 424.26 | 35.08 | (11.46) |
| Total Borrowings | 608.55 | 349.46 | ||
| Total Revenue | 1,182.99 | 3,692.38 | 2,488.39 | 615.53 |
| Profit After Tax | 279.65 | 389.17 | 46.54 | 1.80 |
IPO details
As per the DRHP filed with SEBI, 12.60 lakh shares will be offered as a fresh issue in the NSE SME segment. The face value of the shares is ₹ 10. While Sarthi Capital Advisors Private Limited will be the lead manager for the IPO, Bigshare Services Pvt Ltd will be the registrar. It will be a book-built issue, so there will be a price band rather than a price point, and the actual issue price will be discovered by building the book.
| Issue Type | Book Built Issue IPO |
| IPO Price | ₹ 168 to ₹ 171 per share |
| Face Value | ₹ 10 per share |
| Market Lot | 800 shares |
| Issue Size | 1,782,400 shares (aggregating up to ₹ 30.48 crores) |
| Fresh Issue | 1,260,800 shares (aggregating up to ₹ 21.56 crores) |
| Offer for Sale | 521,600 shares (aggregating up to ₹ 8.92 crores) |
| Listing At | NSE SME |
Shareholding Pattern
| Shareholding pre-issue | 5,072,000 |
| Shareholding post issue | 6,332,800 |
IPO Reservation
| Categories | No. of shares offered |
|---|---|
| QIB shares offered | Not more than 50% of the net offer |
| NII (HNI) shares offered | Not less than 15% of the offer |
| Retail shares offered | Not less than 35% of the offer |
GMP: Digikore Studios IPO
GMP, or grey market premium, is available on this page. The IPO GMP is updated on a day-to-day basis during the running period of the IPO, due to which the GMP rates fluctuate and stabilise after some time. GMP rates are not 100% guaranteed. Please click here for GMP details.
Tentative Dates: Digikore Studios IPO
The issue opens for subscription on September 25, 2023, and closes for subscription on September 27, 2023 (both days inclusive). The basis of allotment will be finalised on October 3, 2023, and the refunds will be initiated on October 4, 2023. In addition, the demat credits are expected to happen on October 5, 2023, and the stock will be listed on the NSE SME on October 6, 2023. The UPI mandate confirmation cut-off time is 5:00 PM on the issue closing day.
| Opening Date | September 25, 2023 |
| Closing Date | September 27, 2023 |
| Basis of Allotment | October 3, 2023 |
| Initiation of Refunds | October 4, 2023 |
| A credit of shares to Demat A/c | October 5, 2023 |
| Listing Date | October 6, 2023 |
Lot Size
The lot size of the Digikore Studios IPO is 800 shares. A retail-individual investor can apply for up to 1 lot, i.e. 800 shares of ₹ 136,800.
| Applications | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Minimum) | 1 | 800 | ₹ 136,800 |
| Retail (Maximum) | 1 | 800 | ₹ 136,800 |
| HNI (Minimum) | 2 | 1,600 | ₹ 273,600 |
Promoters Holdings
Mr. Abhishek Rameshkumar More and M/s. Shree M P J Cement Works LLP is the promoter of the company.
| Pre-issue Shares Holdings | 93.38% |
| Post-issue Shares Holdings | 66.55% |
SWOT Analysis
| STRENGTHS | WEAKNESSES |
|---|---|
| 1. Strong Brand Equity in the VFX industry Worldwide. 2. Solid Management Team. 3. Among the first few VFX studios in India. 4. Deep connections in the Industry Worldwide. 5. Highly trained professionals 6. Strict quality control in the production process. | 1. High cost of capital, basic inputs, and manpower cost 2. Dependency on KMPs 3. Upgradation of knowledge of new technologies 4. Deployed and services provided by the Company |
| OPPORTUNITIES | THREATS |
| 1. Massive content creation industry tailwinds across the globe are fueling high growth in the VFX industry. 2. Ambitious plans as an early entrant into Virtual Production which is disrupting conventional VFX methods. 3. Great foundation to become a global player. 4. Increased offshoring of projects to India as the global content economy expands with new OTT platforms 5. The multi-language release formula led to increased volumes | 1. Its ability to remain competitive may be adversely affected by rapid technological changes and its ability to access such technology. 2. Retention and Availability of quality talent 3. Lockdown and suspension of commercial activities 4. High-level competition |
Miscellaneous Information
| Download Prospectus (PDF) | IPO DRHP |
| Company Contact Information | Digikore Studios Limited C/o Poona Bottling Company Private Limited., 410/1, 411/2, Mumbai Pune Road, Dapodi, Pune – 411012 Phone: 020-35553555 Email: cs@digikore.com Website: https://digikorevfx.com/ |
| IPO Registrar | Bigshare Services Pvt Ltd Phone: +91-22-6263 8200 Email: investor@bigshareonline.com Website: https://ipo.bigshareonline.com/ipo_status.html |
| IPO Lead Manager(s) | Sarthi Capital Advisors Private Limited |
FAQs
What is Digikore Studios’s IPO price?
The Digikore Studios IPO price is ₹ 168 to ₹ 171 per share.
What minimum lot size can retail investors subscribe to?
The minimum investment size is one lot for retail investors. One lot of the Digikore Studios IPO contains 800 shares of ₹ 136,800.
When will the Digikore Studios IPO allotment be available?
The finalisation of the basis of allotment for the Digikore Studios IPO will be done on October 3, 2023, and the allotted shares will be credited to your demat account by October 5, 2023. Check the Digikore Studios IPO allotment status.
When will the Digikore Studios IPO be listed on exchanges?
The Digikore Studios IPO shares listing date is October 6, 2023.
How many Digikore Studios IPO Offer shares are reserved for HNIs and retail investors?
The investors’ portion for QIB is 50% of the Net offers, NII (HNI) is 15%, and retail is 35% of the offer.
