Unpacking the Studio LSD IPO: What Potential Investors Need to Know
The Indian market is buzzing with the upcoming Initial Public Offering (IPO) of Studio LSD Ltd., a dynamic player in the multimedia content production space. As the company prepares to make its debut on the NSE SME platform, it's crucial for prospective investors to delve into the details, understand the offering, and evaluate its potential. This comprehensive guide aims to shed light on Studio LSD's IPO, from its business model to its financials and the key dates to mark on your calendar.
Key Dates: Your IPO Timeline
Understanding the timeline is essential for participating in any IPO. Here’s a tentative schedule for the Studio LSD offering:
Understanding Studio LSD Ltd.: The Business Core
Established in February 2017, Studio LSD Ltd. operates as a comprehensive multimedia production house. Their forte lies in creating original content for both traditional television and modern OTT (Over-The-Top) streaming platforms. The company is recognized for its innovative approach to storytelling and its ability to produce high-quality, genre-defining shows across India, with a particular focus on engaging digital series driven by a strong creative vision.
Their operational scope covers the entire spectrum of content creation, from initial concept development and project financing to talent acquisition (actors and crew), location scouting, set construction, budget management, and comprehensive oversight of both production and post-production phases.
Studio LSD's service portfolio includes:
- Concept and Script Development
- Line Production
- Post-Production Services
- Distribution and Marketing Support
- Consultation and Strategy Development
- Continuous Innovation and Adaptation to market trends
As of early 2025, the company had a team of 16 department employees, indicating a lean but potentially specialized operational structure.
Core Strengths: What Sets Them Apart
- Experienced leadership and a skilled team with deep industry expertise.
- Robust and comprehensive production capabilities covering end-to-end content creation.
- A diverse portfolio of content, catering to various platforms and audiences.
IPO Specifics: The Offering Details
The Studio LSD IPO is a book-built issue valued at ₹74.25 crores. This total comprises a fresh issuance of 1.10 crore shares, amounting to ₹59.40 crores, and an Offer For Sale (OFS) of 0.28 crore shares, totaling ₹14.85 crores.
Key IPO Data
| Detail | Information |
|---|---|
| Issue Price Band | ₹51.00 to ₹54.00 per share |
| Face Value | ₹2 per share |
| Total Issue Size | 1,37,50,000 shares (aggregating up to ₹74.25 Cr) |
| Issue Type | Book Building IPO |
| Listing Platform | NSE SME |
| Book Running Lead Manager | Corpwis Advisors Pvt.Ltd. |
| Registrar to the Issue | Purva Sharegistry (India) Pvt.Ltd. |
| Market Maker | Rikhav Securities Ltd. |
Investment Lot Size and Categories
Investors can place bids for a minimum of 4,000 shares, and in multiples of 2,000 shares thereafter. The minimum investment for retail individual investors is ₹2,16,000.
| Investor Category | Minimum Shares | Minimum Investment (₹) |
|---|---|---|
| Retail Individual Investor (Min) | 4,000 | 2,16,000 |
| Small HNI (Min) | 6,000 | 3,24,000 |
| Big HNI (Min) | 20,000 | 10,80,000 |
Share Allocation Across Investor Categories
The total offering of 1,37,50,000 shares is strategically distributed among different investor segments:
- Market Maker Shares: 6,88,000 shares (5.00%)
- Qualified Institutional Buyers (QIBs): 1,32,000 shares (0.96%)
- Non-Institutional Investors (NII/HNI): 51,72,000 shares (37.61%) - further split into bNII and sNII.
- Retail Individual Investors (RIIs): 77,58,000 shares (56.42%)
Financial Health & Valuation Insights
A glance at Studio LSD's financial performance provides a clearer picture of its growth trajectory. The company has shown consistent improvement in its top and bottom lines over the past three fiscal years.
Performance at a Glance (Restated Consolidated)
| Financial Metric (₹ Crore) | March 31, 2025 | March 31, 2024 | March 31, 2023 |
|---|---|---|---|
| Total Assets | 46.67 | 36.49 | 18.16 |
| Total Income | 105.01 | 102.49 | 46.71 |
| Profit After Tax (PAT) | 11.67 | 10.90 | 2.79 |
| EBITDA | 15.51 | 14.82 | 3.74 |
| Net Worth | 27.54 | 15.87 | 4.96 |
| Total Borrowing | 0.00 | 0.00 | 0.06 |
Notably, the company has managed to reduce its total borrowing to zero as of March 31, 2024 and 2025, which is a positive indicator of financial prudence.
Key Performance Metrics (as of March 31, 2025)
| Metric | Value |
|---|---|
| Market Capitalization | ₹280.22 Cr |
| Return on Equity (ROE) | 53.78% |
| Return on Capital Employed (ROCE) | 57.29% |
| Return on Net Worth (RoNW) | 53.78% |
| Profit After Tax (PAT) Margin | 11.17% |
| EBITDA Margin | 14.85% |
| Price to Book Value (P/BV) | 8.02 |
| Pre-IPO EPS (Rs) | 2.85 |
| Post-IPO EPS (Rs) | 2.25 |
| Pre-IPO P/E (x) | 18.92 |
| Post-IPO P/E (x) | 24.01 |
The post-IPO P/E of 24.01 indicates that the issue might be priced on the higher side, especially when compared to its current earnings.
Promoter Landscape
The promoters of Studio LSD Ltd. are Mr. Prateek Sharma, Mrs. Suman Sharma, and Mr. Parth Shah.
- Pre-Issue Promoter Holding: 100.00%
- Post-Issue Promoter Holding: 73.50%
The dilution in promoter holding is a direct result of the fresh issue of shares, which brings in new capital and broadens the ownership base.
Purpose of the Public Offering
Studio LSD Ltd. intends to deploy the net proceeds generated from this IPO for several strategic objectives:
- Capital Expenditure: A significant portion (₹180 Million) is earmarked for investment in capital assets, likely to enhance production capabilities or expand infrastructure.
- Working Capital Requirement: Funds amounting to ₹249.2 Million will be utilized to meet the company's day-to-day operational needs and ensure smooth business flow.
- General Corporate Purposes: The remaining funds will be allocated for general corporate activities, which may include strategic initiatives, future growth opportunities, or unforeseen expenses.
Strategic Outlook: A SWOT Analysis
To provide a balanced perspective, a brief SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis can be insightful for potential investors.
Strengths
- Proven track record of consistent revenue and profit growth.
- Highly experienced management team with domain expertise.
- Comprehensive in-house production capabilities.
- Diverse content portfolio catering to varied platforms.
- Zero debt as of recent financial statements (FY24, FY25).
Weaknesses
- Aggressive pricing post-IPO (high P/E ratio).
- Operating in a highly competitive and fragmented industry.
- Relatively small team (16 employees) might pose scaling challenges.
Opportunities
- Booming demand for digital content on OTT platforms.
- Potential to expand into new genres or regional markets.
- Collaborations with larger studios or streaming giants.
- Growing consumption of media across various devices.
Threats
- Intense competition from well-established production houses.
- Rapid shifts in consumer preferences and content trends.
- High production costs and potential for project overruns.
- Challenges in retaining creative talent.
- Regulatory changes in the media and entertainment sector.
Company and Registrar Contact Information
For direct inquiries or further information, here are the contact details:
Studio LSD Ltd.
- Address: Unit No.302,301, 3rd Floor, Laxmi Mall, Laxmi Industrial Estate New Link Road, Andheri West, Mumbai, Maharashtra, 400053
- Phone: +91 91371 95384
- Email: compliance@studiolsd.in
- Website: studiolsd.in
Registrar to the Issue: Purva Sharegistry (India) Pvt.Ltd.
- Phone: +91-022-23018261/ 23016761
- Email: newissue@purvashare.com
- Website: purvashare.com/investor-service/ipo-query
Final Thoughts for Potential Investors
Studio LSD Ltd. presents an opportunity to invest in a growing multimedia content production company operating in an expanding digital landscape. While its past financial performance, particularly the growth in revenue and profitability coupled with zero debt, is commendable, a careful evaluation of the IPO's valuation metrics is prudent. The company operates in a highly competitive sector, and the pricing appears to factor in significant future growth.
Before making any investment decisions, it is advisable for individuals to conduct their own thorough due diligence, consider all risk factors, and consult with a qualified financial advisor to align with personal investment goals and risk tolerance.
Considering an IPO application?
Many leading brokers facilitate IPO applications. For instance, if you're a customer of certain popular discount brokers, you can typically apply for IPOs like Studio LSD using UPI as a payment gateway through their back-office platforms.
The process generally involves logging into your broker's console, navigating to the IPO section, finding the relevant IPO, entering your UPI ID, desired quantity, and price, then approving the mandate via your UPI app. Always check your broker's specific application guidelines.
Stay informed, invest wisely.
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