The₹282 crore public issue of opens today at ₹342-360 price band. The IPO comprises a fresh issue of ₹172.80 crore and offer-for-sale of ₹109.34 crore and investors can bid in multiples of 41 shares.
As much as 50 per cent of the net issue is reserved for qualified institutional buyers (QIBs), while 15 per cent is reserved for non-institutional investors (NIIs). Retail investors have been offered 35 per cent of the net issue.
The company will use the net proceeds from the fresh issue of shares to fund working capital requirements as well as for general corporate purposes.
Meanwhile, Vipul Shah and his wife Shefali-promoted Sunshine Pictures has raised ₹84.64 crore from nine anchor investors by allotting over 23.51 lakh shares at ₹360 apiece, a day before the IPO opens for public subscription.
Among the marquee investors included Uni Growth Fund, Khandelwal Finance, Zeal Global Opportunities Fund, The Asia Fund VCC and Shine Star Build Cap, Innovative Vision Fund, Arnesta Global Opportunities Fund, Visionary Value Fund, and LRSD Securities.
The company engages in the production of projects as sole-producer or co-producer. In a co-production model, SPL partners with a reputable studio and produces the project for a fixed fee (a share of the intellectual property and profits from the project with such studios).
A co-production approach is adopted when the proposed project requires a big budget. Whereas under sole production, SPL finances the entire project and executes the end-to-end production while retaining all the rights including intellectual property, titles, distribution rights and other interests in the projects.
This approach allows the company to retain the entire up-side revenue from the theatrical releases and monetize rights through sale of OTT content, music rights, downstream derivatives such as remakes, sequels, spin offs, etc.
The company is led by its Promoter and Managing Director, Vipul Amrutlal Shah, who possesses experience of over 25 years in the Media & Entertainment industry and is a prominent film producer and director of films, TV serials and web series.
SPL’s prominent works in the modern Indian cinema includes ‘The Kerala Story’, ‘Force’, ‘Commando: A One-Man Army’, ‘Holiday: A soldier is never off duty’, etc. As of Aug’26, the company carries a subscriber base of 1,96,000 subscribers on YouTube and a follower base of 1,32,000/1,06,000 on Instagram/Facebook, respectively
His debut as a director in Hindi film industry was with the movie ‘Aankhen’ which was one of the blockbuster hits of year 2002 followed by ‘Waqt: The Race Against Time’, ‘Namastey London, ‘Singh Is Kinng’ and ‘London Dreams’, amongst others.
GYR Capital Advisors Private Limited is the book-running lead manager, while Bigshare Services Private Limited is the registrar of the Sunshine Pictures IPO.
What brokerages say:
SBI Securities: View & Valuation: Sunshine Pictures is engaged in the business of production and distribution of films, web series and TV serials. It’s standalone production – ‘The Kerala Story’, emerged as the highest return-on-investment blockbuster in 2023. Historically, the company has recorded negative Revenue/EBITDA/PAT CAGR of 25.4 per cent/8.6 per cent/13.4 per cent 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 ₹360, the issue is valued at FY26 P/E multiple of 27.8x based on post-issue capital. We recommend investors to AVOID the issue.
Master Capital Services: Sunshine Pictures Limited is positioned to benefit from the growing demand for diverse and digital-first content through its experience in film, television and web series production. Its technology-driven, data-led approach, strong relationships with studios and creative professionals, established content portfolio, Sunshine Music Music and Sunshine Digital (Originals) verticals, and pipeline of six films and two web series provide a platform to participate in the evolving Indian M&E industry. Investors may consider the IPO as a potential long-term investment opportunity